Insurance and insolvency

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Featured Restructuring & Insolvency content

Key elements of a standstill agreement

When restructuring is considered rather than formal insolvency proceedings (see Practice Note: Benefits of restructuring over formal proceedings) the...

What is a statutory declaration of solvency, and what happens if a false declaration of solvency is made

Statutory declaration of solvencyA company enters voluntary liquidation when the members of the company vote to do so by a special resolution. For...

The pari passu principle and collection remedies for the office-holder—the position under the Insolvency (England and Wales) Rules 2016

The primary function of office-holders in personal and corporate insolvency is to collect in the assets belonging to a company or individual and to...

Debt for equity swaps

A popular restructuring method is a debt for equity swap; financial creditors receive equity in the restructured vehicle in return for reducing or...

Practice notes

US ipso facto clauses

Ipso facto clauses definedContracts often contain provisions to the effect that the contracts will terminate upon the bankruptcy or insolvency of one...

Produced in partnership with Julie Lanz of Skadden Arps Slate Meagher & Flom LLP 9th Nov

Practice notes

The deemed consent procedure, decision-making procedure, and meetings—the position under the Insolvency (England and Wales) Rules 2016

The Insolvency (England and Wales) Rules 2016, SI 2016/1024 (IR 2016) provide for a revised scheme for decision making in insolvency from 6 April...

Produced in partnership with Richard Bowles 9th Nov

Practice notes

Cashflow and balance sheet tests for insolvency

IntroductionThis Practice Note will give a basic overview of the applicable tests for cashflow and balance sheet insolvency under section 123 of the...

Produced in partnership with South Square 9th Nov

Practice notes

What is considered onerous property or contracts?

DisclaimerUnder sections 178 and 315 of the Insolvency Act 1986 (IA 1986), a liquidator or a trustee in bankruptcy (trustee) has the power to disclaim...

9th Nov

Practice notes

Covenant waivers and resets

One of the initial signs of distress is usually a covenant breach by the company. The lenders may agree to a simple waiver, which cures a temporary...

9th Nov

Practice notes

Role, powers, functions and duties of a liquidator

Coronavirus (COVID-19)This content is affected by the coronavirus (COVID-19) pandemic. For further details, take a look at our Coronavirus (COVID-19)...

9th Nov

Practice notes

Practice Direction on Insolvency Proceedings

Coronavirus (COVID-19)This content contains guidance on subjects impacted by the Coronavirus Act 2020 and related changes to court procedures and...

9th Nov

Practice notes

Effect of a moratorium in a company voluntary arrangement (CVA) on creditors and the company [ARCHIVED]

The Court of Appeal has made it clear in JCAM that a moratorium cannot be obtained through the back door by filing a notice of intention to appoint an...

Produced in partnership with Lexa Hilliard QC of Wilberforce Chambers 9th Nov

Practice notes

Court-appointed receivers—when a court will appoint a receiver and who may be appointed

This Practice Note covers receivers who are appointed by the court, including the circumstances in which a court will appoint a receiver and who may...

Produced in partnership with John Hughes of Shakespeare Martineau LLP 9th Nov

Practice notes

Transactions defrauding creditors—claims under section 423 of the Insolvency Act 1986

It is possible for a claim to be brought under section 423 of the Insolvency Act 1986 (IA 1986) against a company or individual following a...

9th Nov

In-house

Practice notes

How to serve a demand for payment

A demand for payment is a formal demand made in accordance with the contractual requirements underpinning the liability which the party issuing the...

Produced in partnership with James Hannant of Guildhall Chambers 9th Nov

Precedents

Certificate of urgency for applications in insolvency proceedings

Court Reference No: [INSERT COURT REF. NUMBER][IN THE HIGH COURT OF JUSTICEBUSINESS AND PROPERTY COURTS [OF ENGLAND AND WALES OR IN [INSERT...

9th Nov

Practice notes

Prohibited names under section 216 of the Insolvency Act 1986

The purpose of section 216 of the Insolvency Act 1986Section 216 of the Insolvency Act 1986 (IA 1986) is aimed at preventing phoenix companies from...

9th Nov

Practice notes

Insolvency set-off—the position under the Insolvency (England and Wales) Rules 2016

IntroductionSet-off refers to claims that may be set-off against other claims. A set-off is the right of one party, Party A, who is owed money by...

Produced in partnership with South Square and BDO LLP 9th Nov

In-house

Practice notes

US bankruptcy financing—debtor-in-possession (DIP) financing

DIP financing generallyDebtor-in-possession financing (DIP financing) is new, post-petition financing provided to a debtor in a bankruptcy case. The...

Produced in partnership with Julie Lanz of Skadden Arps Slate Meagher & Flom LLP 9th Nov

In-house

Practice notes

Avoiding invalid floating charges under section 245 of the Insolvency Act 1986

Coronavirus (COVID-19)This content contains guidance on subjects impacted by the Coronavirus Act 2020 and related changes to court procedures and...

9th Nov

Most recent Insurance and insolvency content

Practice notes

Insurance business transfer schemes

Consistent with the common law of contract, an insurer is not able to transfer the burden of its obligations under a contract of insurance without the...

Produced in partnership with Geraldine Quirk of Bryan Cave Leighton Paisner 3rd Dec

Practice notes

Assignment of insurance policies and claims in insolvency

Duties of an office-holder to realise propertyInsolvency procedures (such as administration, liquidation or bankruptcy) involve the appointment of an...

Produced in partnership with David Steinberg and Matthew Padian of Stevens & Bolton LLP 29th Nov

Practice notes

Third Parties (Rights Against Insurers) Act 2010

This Practice Note considers the key provisions of the Third Parties (Rights Against Insurers) Act 2010 (the 2010 Act), which replaced the Third...

29th Nov

Practice notes

Brexit—impact on insolvent insurers

Status of the UKAs of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK...

29th Nov

Brexit

Practice notes

Insolvency of insurers

Brexit impactAs of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has...

Produced in partnership with Geraldine Quirk of Bryan Cave Leighton Paisner 29th Nov

Practice notes

Insurers (Reorganisation and Winding-Up) Regulations

The Insurers (Reorganisation and Winding-Up) Regulations 2003 (SI 2003/1102) (2003 Regulations) were introduced to implement the EU Directive on the...

Produced in partnership with Geraldine Quirk of Bryan Cave Leighton Paisner 29th Nov

Q&As

If a company is 'merely' in liquidation (ie a CVL) would this: (i) mean we can still issue against the insured under the Third Parties (Right Against Insurers) Act 1930 (prior to it being dissolved), obtain judgement and then go against the insurer, (ii) prevent the company being dissolved until the judgment has been received so we can go against the insurer to recover the money?

We have limited this Q&A to cover litigation against a company in Creditors' voluntary liquidation (CVL).Where a company is in CVL there is no...

Produced in partnership with Carly Schiff of Boyes Turner 29th Nov

Q&As

Will an insurance company accept a claim brought against an insolvent company by a purchaser when the product became faulty/damage arose while the company was still solvent/and paying their policy premiums?

The Third Parties (Rights Against Insurers) Act 2010 (TP(RAI)A 2010) applies if the company is in administration, liquidation or subject to a company...

29th Nov

Q&As

Does the Third Parties (Rights Against Insurers) Act 1930 apply to special administrations?

STOP PRESS: From 6 April 2017, the Insolvency Rules 1986, SI 1986/1925 were revoked and replaced by the Insolvency (England and Wales) Rules 2016 (IR...

29th Nov

Q&As

If an insured company against which an adjudication award has been obtained is dissolved, must that company be restored to the register to pursue the action even though it is subject to an enforced award and liability has therefore crystallised? If so, should proceedings be brought in the client's name or the name of the dissolved company?

The Third Parties (Rights Against Insurers) Act 1930 (TP(RAI)A 1930) was introduced to allow a third party to step into the shoes of the insolvent...

29th Nov

Practice notes

Financial services firms and insolvency

Financial services firms and insolvency provisions in FSMA 2000The provisions in Part XXIV of the Financial Services and Markets Act 2000 (FSMA 2000)...

29th Nov

Practice notes

Solvency II—essentials

BREXIT: As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has...

29th Nov

COVID-19

Practice notes

Corporate Insolvency and Governance Act 2020 moratorium and restrictions on ipso facto clauses—financial services exemptions map

This Practice Note provides a map of the financial services exemptions from the provisions for moratorium and restrictions on ipso facto clauses which...

25th Nov

Practice notes

Third Parties (Rights Against Insurers) Act 2010—one minute guide

Purpose of the TP(RAI)A 2010The Third Parties (Rights against Insurers) Act 2010 (TP(RAI)A 2010) repeals and replaces the Third Parties (Rights...

Produced in partnership with HFW 20th Nov

Practice notes

Warranty and indemnity and contingent risk insurance in distressed M&A transactions

Despite economies around the world receiving unprecedented governmental support in this challenging period, the financial repercussions of the...

27th Oct

Practice notes

Construction insolvency—the Third Parties (Rights Against Insurers) Acts

This Practice Note considers the Third Parties (Rights Against Insurers) Act 2010 (TP(RAI)A 2010) and the Third Parties (Rights Against Insurers) Act...

26th Sep

Practice notes