Zone of Insolvency

Zone of Insolvency

Global bankruptcy financial restructuring and insolvency group releases the Q2 2021 issue of International Restructuring Newswire

Posted in Australia, Canada, Europe, Latin America, UK, US

This issue of the International Restructuring Newswire surveys recent developments in no fewer than five countries.

In the United States, on the 15th anniversary of the enactment of the Model Law on Cross-Border Insolvency as Chapter 15, we present our annual survey of new case law in the US. These decisions have far-reaching influence in the more than 50 countries that have enacted the Model Law.

In Canada, we look at developments in the use of a corporate “arrangement ” as an alternative to the CCAA insolvency regime.

Recent developments in new restructuring laws are examined in … Continue Reading

Norton Rose Fulbright’s global insolvency chair is conference chair of INSOL International’s Latin America Virtual Seminar

Posted in Latin America, US

Latin America Virtual Seminar

Global Head of Financial Restructuring and Insolvency Howard Seife is conference chair of INSOL International’s Latin America Virtual Seminar, which will cover the latest news and developments in cross-border restructurings in Latin America.

The seminar will run over three different dates—March 4, March 11 and March 18.

INSOL International is a global federation of lawyer and accountant national associations who focus on turnaround and insolvency. With over 40 member associations with over 9,000 professionals, the organization involves over 100 countries.

Please visit the INSOL International site for more information and to register.… Continue Reading

Litigation trends survey

Posted in Australia, Canada, Europe, Singapore, UK, US

16th Annual Litigation Trends Survey ReportFieldwork for Norton Rose Fulbright’s sixteenth annual litigation trends survey was conducted in December 2020, providing up-to-date insights on key US disputes trends across a tumultuous year and a look ahead into 2021.

View our sixteenth annual litigation trends survey here for insights from 183 corporate counsel on disputes trends, the impact of COVID-19 on litigation, emerging dispute sources, and more.… Continue Reading

So Many Troubled California Health Care Districts, So Many Have Filed Chapter 9—Lessons To Be Learned

Posted in US

With the increasing financial pressures on California hospitals in general, and rural hospitals in particular, it is likely that growing numbers of California health care districts will seek chapter 9 protection in the future.

For further discussion on the challenges facing California health care districts you can read the article featured in California Bankruptcy Journal (Vol. 35 Cal. Bankr. J. No 3 (2020)) which Ms. Winthrop co-authored with Mary H. Rose, a shareholder of Buchalter, A Professional Corporation.… Continue Reading

Small businesses, big changes: Australia’s new restructuring process

Posted in Australia

On 1 January 2021, significant changes to Australia’s restructuring and liquidation regime came into effect for small businesses, including a new restructuring process.  These changes were announced on 24 September 2020, however many aspects of the pending changes did not become clear until the bill and associated regulations were released in December 2020. These changes are part of a series of measures introduced in Australia in response to the current and anticipated economic impact of the COVID-19 pandemic. See Jeffrey Black and Nick White’s previous discussion on these issues,  here and here.

Now that the legislation has commenced, the … Continue Reading

Contagion liability risk in the United States and Australia for parent entities arising from the insolvency of a subsidiary

Posted in Australia, US

With the influx of insolvency cases expected on a global basis in coming months as government support measures are wound back, now is an opportune time for businesses to consider the extent of their potential exposure if a subsidiary liquidates. In particular, can losses be isolated within a liquidating subsidiary, or will there be a contagion effect, so that a parent entity may be held liable for the outstanding debts of the subsidiary?

Read the International Corporate Rescue article or download the reprint for a discussion of that issue by our cross-border team of financial restructuring and insolvency lawyers.… Continue Reading

Brexit’s impact on UK-EU cross-border restructuring

Posted in UK

Brexit—the UK’s exit from the European Union—became fully effective at the turn of the year with the expiry of the implementation period on 31 December 2020.

Prior to 1 January 2021, recognition and enforcement of restructuring and insolvency procedures and judgments between the UK and EU member states was subject to common EU regulations which had direct effect and broadly offered automatic recognition. Those common regulations no longer apply to the UK.

Notwithstanding the loss of these regulations, there remains an effective legal framework for recognition of inbound proceedings and judgments from EU member states to the UK, including the … Continue Reading

Scheme update: fees, class composition and forum shopping in Re Codere Finance

Posted in Europe, Latin America, UK

Introduction

Spanish gaming company Codere proposed an English scheme of arrangement to restructure over €800 million in existing note debt. As a part of the scheme, Codere agreed to pay fees and provide benefits to an ad hoc sub-committee of noteholders that were not available to all noteholders. The High Court held that those fees and benefits were not so material as to fracture the single voting class of noteholders. Re Codere Finance 2 (UK) Limited) [2020] EWHC 2441 (Ch) and [2020] EWHC 2683 (Ch).

The court also considered Codere’s incorporation of a new English subsidiary and the assumption by … Continue Reading

Global bankruptcy financial restructuring and insolvency group releases the Q4 2020 issue of International Restructuring Newswire

Posted in Canada, Europe, UK, US

Our global bankruptcy financial restructuring and insolvency team has released its quarterly International Restructuring Newswire.
International Restructuring Newswire - Norton Rose Fulbright
Our team has published five articles examining new developments and a number of the tools available for financial restructurings in the United Kingdom, Germany, the Netherlands and Canada.

Continue Reading

A DIP of the toe into US Chapter 11 waters for Australia

Posted in Australia

On 24 September 2020, the Australian Government announced the introduction of two new restructuring and insolvency processes for small businesses (having liabilities of less than AU$1 million). It is proposed that these measures will be introduced from 1 January 2021 with a view to reducing the cost, time and complexity burden imposed on small businesses by the existing insolvency processes. The Australian Government has described the changes as “the most significant changes to the Australian insolvency framework in almost 30 years.”

The changes represent the latest in a series of measures introduced in Australia this year in response to the … Continue Reading