The Indian legal framework provides various enforcement options to creditors for debt recovery vis-à-vis obligors. The availability and exercise of these options depend on the nature of the obligations involved, and the legal status of creditors and debtors, and therefore is complex. While each option provides an effective framework, they are also fraught with their respective advantages and disadvantages.
12 January 2025
Can you contract out of being included in a restructuring plan? In English law, that is an issue of considerable interest to borrowers and creditors when considering consensual compromises. It raises important questions about the policy of insolvency and restructuring law, particularly in the context of restructuring plans.
That issue arose in UK Commercial Property Finance Holdings Limited v Cine-UK Limited & Anor [2024] EWHC 2475 (Ch). The court had to grapple with the logic and limits of negative covenants in the zone of Pt 26A of the Companies Act (Pt 26A). Not all of those issues were resolved by the court. Importantly, the court opted not to grasp the nettle and consider whether a negative covenant not to be included in a restructuring plan is enforceable at all.
It is critical to the operation of bond markets that ultimate account holders bringing liquidation proceedings against bond issuers are given only limited recourse to issues. One recent BVI decision, in which it was held that accountholders have standing as contingent creditors to present a winding-up petition against the issuer, unexpectedly stretches those limits. This article examines whether that decision is correct.
12 January 2025The volatility of many cryptoassets is such that the date on which they fall to be valued for damages assessment can be critical to the commercial viability of crypto litigation. Yet this is a subject that receives comparatively little focus. This article reviews two recent cases, one from each of the English and Singaporean High Courts, where the question of valuation date for cryptoassets has arisen and, on the basis of those decisions, suggests a practical framework for approaching valuation date issue in typical cryptoasset disputes.
12 January 2025In this article the authors consider the impact on solicitors engaged in banking and finance transactions of the Law Society’s recent Guidance on the Impact of Climate Change on Solicitors . How is growing awareness of the potential risks associated with climate change affecting the nature and content of solicitors’ duties – and potential liabilities – to their clients?
12 January 2025Part 26A, introduced into the Companies Act 2006 by the Corporate Insolvency and Governance Act 2020 (CIGA), is an important tool to assist companies in financial difficulties, building on the Pt 26 scheme of arrangement. Part 26A contains a relatively thin set of statutory provisions that leave a great deal to be fleshed out by the courts. Judges have risen to the occasion and have begun to develop a structured approach to Pt 26A cases. There are, however, some difficult issues that are emerging in the process. This article aims to pull together a shopping list of these issues, to promote conversation among scholars, practitioners, and policy makers about the way forward.
25 November 2024In this article Michelle Gilmore-Parry explains how the asset sales covenant in top-tier European leveraged financings has evolved and discusses the key considerations for lenders when reviewing the asset sales covenant and related definitions in leveraged finance documentation.
24 November 2024
The registration of charges granted by UK Companies and LLPs at Companies House is a crucial step in securing their validity and the priority of security interests over the assets of a chargor. However, the strict 21-day filing deadline under the Companies Act 2006 leaves little room for error or delay, including in the event of an IT systems outage affecting the electronic filing services provided by Companies House of third-party portals.
In this article, the authors examine some of the recent incidents that have highlighted the potential vulnerabilities of electronic filing and offer some practical tips and considerations for parties with an interest in a charge in the event there is an IT outage during the period allowed for the registration of a charge.
In this article Nik Yeo discusses how the recent detailed judgment in D’Aloia v Persons Unknown & Bitkup clarifies and extends some previously established contractual and proprietary principles in relation to liability of crypto exchanges to victims of crypto fraud.
24 November 2024This article summarises key issues relevant to lenders and borrowers in loan financings that involve companies limited by guarantee as a borrower, guarantor and/or security provider.
24 November 2024