News & Analysis as of

Creditors Appeals United Kingdom

Jones Day

Adler: English Court of Appeal Overturns Restructuring Plan (UPDATE)

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On January 23, 2024, the Court of Appeal in England and Wales (the "Appeal Court") upheld a challenge launched by dissenting creditors to overturn the UK Restructuring Plan (the "RP") of the Adler Group previously approved by...more

Akin Gump Strauss Hauer & Feld LLP

Adler Restructuring Plan Set Aside: Reflections on the English Court of Appeal’s Landmark Ruling

In one of the most highly anticipated judgments in the European restructuring market in recent years, on 23 January 2024, the English Court of Appeal overturned the High Court’s decision sanctioning the Adler restructuring...more

A&O Shearman

The Adler appeal: our key takeaways

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The Adler appeal: Our key takeaways from the landmark Court of Appeal judgment setting aside the Adler restructuring plan, and what it means for future restructuring plans - The Court of Appeal has handed down its...more

Conyers

Important Takeaways for Bondholders: Do They Have Rights as Contingent Creditors?

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The Cayman Islands Grand Court recently delivered its judgment in Re Shinsun Holdings (Group) Co., Ltd. FSD 192 of 2022 (DDJ) (21 April 2023) (unreported) (the “Shinsun Judgment”) in which the court determined the ultimate...more

Dechert LLP

UK Court Rules Debtor Cannot Use Corporate Vehicle to Evade Liability

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Section 423 of the Insolvency Act 1986 allows for the reversal of certain transactions at an undervalue that are intended to prejudice the interests of creditors. The scope of Section 423 is extensive and may be used to...more

Conyers

Directors: “What shall we do?” – Interplay between the Sequana decision, HSBC v NewOcean Energy Holdings Ltd and the new Cayman...

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Due to the recent challenging economic environment, the law’s treatment of creditors’ interests in a restructuring or insolvency has been a hot topic. From a creditor’s perspective, its objective will be straightforward: to...more

Latham & Watkins LLP

UK Supreme Court Narrows Scope of “Reflective Loss” Principle

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The decision overturns a series of cases deemed to have over-expanded a principle preventing shareholders from claiming against third parties for falls in a company’s value. On 15 July 2020, the UK Supreme Court...more

Skadden, Arps, Slate, Meagher & Flom LLP

Skadden's 2020 Insights

Despite political and economic uncertainties, markets and deal activity were resilient in 2019, and strong fundamentals remain in place heading into 2020. Companies continue to face a challenging litigation and enforcement...more

BCLP

Can an insolvent company enforce an adjudicator’s decision? Yes - in exceptional circumstances

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Are the regimes of construction adjudication and insolvency incompatible? Recent Court of Appeal authority suggested that they are, but in Meadowside Building Developments Ltd (In Liquidation) v 12-18 Hill Street Management...more

Latham & Watkins LLP

UK Court of Appeal: When to Trigger the Creditor Duty Shift

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Ruling provides guidance on how close to insolvency a company needs to be before directors must consider creditors’ interests. The UK Court of Appeal has ruled that the payment of a lawful dividend did not, on the facts,...more

Latham & Watkins LLP

Directors Beware: UK Court of Appeal Ruling Clarifies Creditors’ Abilities to Challenge

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The court offers guidance on reversing lawful dividend payments and when directors need to take into account creditors’ interests. On 6 February 2019, the UK Court of Appeal published a judgment in BTI v. Sequana that will...more

Dechert LLP

English Court of Appeal Refuses to Give Effect to Foreign Restructuring

Dechert LLP on

In a decision widely anticipated by investors in emerging market and distressed debt, the Court of Appeal has upheld the decision of the High Court to refuse to grant an indefinite moratorium on claims under certain English...more

Morrison & Foerster LLP

English Law Routes Exhausted for Banco Esporito Santo Creditors: English Law Challenges to EU Bank Restructurings Firmly Closed...

Summary – Decision of U.K. Supreme Court - The U.K. Supreme Court has closed off a challenge to the restructuring of Banco Esporito Santo (BES) under English law. Through an emergency liquidity facility creditors had...more

Dechert LLP

English Court of Appeal Clarifies the Ambit of the Rule Against Reflective Loss

Dechert LLP on

In the recent decision in Carlos Sevilleja Garcia v Marex Financial Limited,1 the Court of Appeal helpfully summarised the justifications for the English law rule against claims for reflective loss and confirmed that the rule...more

Vedder Price

Slots: A Source of Coin Even After Insolvency?

Vedder Price on

The administrators of the airline Monarch Airlines Limited (Monarch) have won an appeal in the Court of Appeal regarding the rights of Monarch in and to certain “slots” at Luton and Gatwick airports, after Monarch went into...more

Bryan Cave Leighton Paisner

Court of Appeal case - of interest to Security Trustees

Including an unsecured creditor in an agreed payments waterfall does not by itself confer on that unsecured creditor the benefit of a mortgagee’s usual duties on enforcement of security, or a direct claim against the sale...more

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