The court ruling yesterday in Re Virgin Active Holdings Limited [2021] EWHC 1246 has paved the way for restructuring plans under Part 26A to the Companies Act 2006 (“RPs”) to be used to compromise the rights of landlords, financial creditors and other unsecured creditors provided the company shows that those creditors are “out of the … Read more

In a recent decision, the Court of Appeal has followed last year’s Privy Council decision in Ciban Management Corpn v Citco (BVI) Ltd [2020] UKPC 21 (noted here) and confirmed that the Duomatic principle applies to beneficial shareholders, provided they are taking all of the decisions in the relevant transaction: Satyam Enterprises Ltd v Burton … Read more

The High Court has held that the liability of directors and shareholders of a company in respect of a distribution exceeding the company’s distributable profits, as properly calculated, was limited to the amount of the excess: SSF Realisations Limited (In Liquidation) v Loch Fyne Oysters Limited [2020] EWHC 3521 (Ch). Previous authorities had suggested doubt … Read more

From 31 December 2020, the European Regulation on Insolvency Proceedings (the “EIR”) ceased to apply in the UK. As a result: The EIR provides the rules for when the law of the place in which the insolvency proceedings have been opened can be supplanted by another law, but only that of a member state. The … Read more

In a recent decision concerning the scope of extraterritorial application of the SFO’s section 2 powers, the Supreme Court held that the SFO does not possess the power to compel a foreign company to produce documents held outside the UK: R (on the application of KBR, Inc) (Appellant) v Director of the Serious Fraud Office … Read more

The High Court has dismissed a strike out application in respect of a claim brought under section 423 of the Insolvency Act 1986 (“IA 1986”) in respect of an alleged transaction defrauding creditors, holding that it is not necessary to prove a freestanding connection between the defendant and England, separate from the litigation itself, in … Read more

The Supreme Court has held that a claimant who had engaged in mortgage fraud was not barred from bringing a claim against her solicitors for negligently failing to register the forms transferring the property to her and releasing a prior mortgage: Stoffel & Co v Grondona [2020] UKSC 42. The decision is of interest in … Read more