Zone of Insolvency

Zone of Insolvency

Looking forward to the revival of the pre-pack In the Netherlands

By Koen Durlinger on Posted in Europe
The pre-pack was widely used as a restructuring tool in the Netherlands in the aftermath of the global financial crisis. The process was developed by the Dutch restructuring market and facilitated by the majority of Dutch courts. However, as a consequence of the judgment of the European Court of Justice (ECJ) in the Estro-case in 2017,… Continue Reading

The benefits of Canada’s CCAA

By Jennifer Stam and Meghan Parker on Posted in Canada
When faced with a cross-border or multi-jurisdictional filing, it is important to understand the key attributes of the restructuring legislation in all applicable jurisdictions. Where Canadian assets, creditors and/or operations are involved, the Canadian Companies’ Creditors Arrangement Act (CCAA) provides a restructuring regime that can be beneficial to debtors and creditors. Below are a few… Continue Reading

Unfair preference claims shot? Impact of Australian High Court’s rejection of peak indebtedness rule in Gunns case

By Laura Johns and Seraijah Choi on Posted in Australia, Financial Restructuring & Insolvency
Summary In a highly anticipated decision, the High Court of Australia has unanimously determined in Bryant & Ors v Badenoch Logging Pty Ltd [2023] HCA 2 that the peak indebtedness rule is not part of the unfair preference provisions in the Corporations Act 2001 (Cth) (Act).  The decision means liquidators will no longer be able… Continue Reading

Australian High Court banishes statutory set-off, sets up liquidator recoveries in unfair preference decision

By Laura Johns and Deborah Tsai on Posted in Australia, Financial Restructuring & Insolvency
In a landmark case, the High Court of Australia this month unanimously determined in Metal Manufactures Pty Limited v Morton [2023] HCA 1 (Morton) that set-off is not available against a liquidator’s unfair preference claim. The effect of the decision is that a creditor is not entitled to deduct any outstanding claim that it might… Continue Reading

Australian corporate insolvency reform: What can we expect in 2023?

By NRF Australian Restructuring Team on Posted in Australia, Financial Restructuring & Insolvency, Global
Overview There has been a growing appetite for corporate insolvency law reform in Australia in the last 18 months. In 2021, public consultations were completed on improvements to creditors’ schemes of arrangement and the treatment of insolvent trusts, and there was an independent review of the laws providing directors with a safe harbour from insolvent… Continue Reading

US Bankruptcy Court dismisses Ch. 15 case, bars foreign representative from appearing before it

By Michael Berthiaume (US) and Francisco Vazquez (US) on Posted in Bankruptcy Courts, Financial Restructuring & Insolvency, Global
Chapter 15 of the Bankruptcy Code was enacted to, among other things, foster cooperation between courts of the United States and courts of foreign countries “involved in cross-border insolvency cases.” 11 U.S.C. § 1501(a). In furtherance of this mandate, Section 1518 of the Bankruptcy Code requires a foreign representative to inform the US court of… Continue Reading

Norton Rose Fulbright’s global restructuring group releases the Q1 2023 issue of International Restructuring Newswire

By NRF Digital Team on Posted in Financial Restructuring & Insolvency, Global
International Restructuring Newswire Q1 2023Our global restructuring team has released its quarterly International Restructuring Newswire. Our new issue features articles from Canada, Germany, the US, France and China/Hong Kong to help you stay current on recent developments in restructurings in various jurisdictions around the globe.… Continue Reading

Norton Rose Fulbright’s global restructuring group releases the Q4 2022 issue of International Restructuring Newswire

By NRF Digital Team on Posted in Financial Restructuring & Insolvency, Global
Our global restructuring team has released its quarterly International Restructuring Newswire. Our new issue features articles from the US, Australia and Canada to help you stay current on recent developments in restructurings in various jurisdictions around the globe. Alto Maipo: Delaware ruling poses jurisdictional challenges for Chapter 11 debtors Financial crime in an economic downturn: tracing… Continue Reading

UK Supreme Court delivers landmark judgment on directors’ duties when a company faces insolvency

By Helen Coverdale on Posted in Europe, Financial Restructuring & Insolvency
Why is the decision important? For the first time, the Supreme Court has considered whether there is a common law duty on directors to act in the interests of creditors when a company faces insolvency, but is not yet in an insolvency process (the so-called twilight zone) (the Creditors’ Duty). Unanimously agreeing that such a… Continue Reading

Can restructuring plans strip out third party guarantees?

By Helen Coverdale on Posted in Financial Restructuring & Insolvency, UK, Uncategorized
The English High Court has considered whether the new restructuring plan under Part 26A of the Companies Act 2006 (CA 2006) can release claims against third party guarantors. This decision has important implications for guarantors and creditors holding third party security in a restructuring scenario. What was the background? The case had its origins in… Continue Reading