News & Analysis as of

Insolvency Personal Liability

Husch Blackwell LLP

CDTFA Cannabis Creditor: Myths and Truths

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Dealing with creditors is never a fun experience. However, some creditors are more severe than others, especially in the cannabis industry. One of those is the California Department of Tax and Fee Administration (CDTFA),...more

Barnea Jaffa Lande & Co.

Personal Liability for Debt to the Registrar of Companies

The Insolvency and Financial Rehabilitation Law came into effect in 2019. The new law added a new cause of action for imposing personal liability on a director or CEO of a corporation in insolvency in respect of damages...more

Walkers

End of Court Year Case Digest: Irish Insolvency & Restructuring Judgments

Walkers on

As another Irish Court year will soon commence, now is an opportune time to look back at some of the more interesting insolvency and restructuring judgments to have been delivered in the Superior Courts during the last 12...more

Barnea Jaffa Lande & Co.

New Israeli Supreme Court Ruling Expected to Reduce Legal Protection Granted to Managers and Board Members in Israel

After a lawsuit filed by liquidators of a company that collapsed against the company’s former officers, directors, and independent auditors was dismissed in limine, a new Israeli Supreme Court ruling overturned that decision...more

Lowenstein Sandler LLP

Risk of Personal Liability Despite Incorporation

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One of the fundamental principles of corporate law is that the owners, directors and officers of a corporate entity generally are not personally responsible for the entity’s debts. Without this insulation from personal...more

American Conference Institute (ACI)

[Event] 10th Edition of Fraud, Asset Tracing & Recovery - January 24th - 25th, Miami, FL

ACI’s and C5’s 10th Edition of Fraud, Asset Tracing & Recovery Miami conference is returning on January 24 – 25, 2022 in person! Deemed as the foremost, can’t-miss event for the Fraud community, it gathers the pre-eminent...more

Dechert LLP

Avoiding an Out-of-Court Restructuring May Breach Fiduciary Duties

Dechert LLP on

Introduction Under Delaware law, the board of directors of an insolvent company has wide latitude to pursue good-faith strategies to maximize the value of the firm. Trenwick Am. Litig. Tr. v. Ernst & Young, L.L.P., 906 A.2d...more

A&O Shearman

The Corporate Insolvency and Governance Act 2020

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The Corporate Insolvency and Governance Act (the Act) entered into force on 26 June 2020. The Act represents the most significant reforms to the insolvency framework in the United Kingdom since, at least, the widespread...more

K&L Gates LLP

Health Care Triage: Key Considerations for Officers and Directors of Distressed Companies

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In this week’s episode, Andrea Cunha outlines some of the key considerations directors and officers should assess when their company is approaching insolvency, including how to evaluate financial distress of the company, the...more

Morrison & Foerster LLP

Buying Insolvent UK Companies Post COVID: Ten Top Tips For PE Investors

Many investors, including PE firms, are waiting with bated breath to see how the UK economy, currently dependent on COVID-19-related government support, will respond once that stimulus is withdrawn. An increase in UK company...more

Latham & Watkins LLP

Aufatmen bei Unternehmensleitern und Insolvenzverwaltern: Bundesgerichtshof bestätigt D&O-Deckung bei Insolvenzverschleppung

Latham & Watkins LLP on

Der Bundesgerichtshof (BGH) hat mit Urteil vom 18. November 2020 (IV ZR 217/19) entschieden, dass Ansprüche gegen GmbH-Geschäftsführer auf Ersatz von Zahlungen, die nach Insolvenzreife vorgenommen wurden, vom...more

Hogan Lovells

Second Suspension of liability for Wrongful Trading

Hogan Lovells on

On 26 November 2020, the Corporate Insolvency and Governance Act 2020 (Coronavirus) (Suspension of Liability for Wrongful Trading and Extension of the Relevant Period) Regulations 2020 (the “Regulations”) came into force....more

Jones Day

Directors' Duties—A European Overview: Financial Distress and COVID-19 - November 2020

Jones Day on

A company or group's financial distress causes significant turmoil for its owners, directors, managers, employees and often its suppliers and other creditors. For directors in particular, there are significant...more

Goodwin

Potential Personal Liability Of UK Directors For Company Debts

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This bulletin is of particular interest to our clients and contacts who are directors of UK companies which face liquidity issues. Directors (including shadow directors) can be liable for the debts of their companies when...more

BCLP

Corporate Insolvency and Governance Act 2020 - what does it mean for landlords?

BCLP on

The Corporate Insolvency and Governance Act 2020 was passed on 25 June 2020. The legislation has been in contemplation for a number of years, and has implemented a significant reform to the UK's restructuring and insolvency...more

A&O Shearman

A New Restructuring Plan

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For over a century, U.K. company law has enabled a company to propose, to its creditors or shareholders, a compromise or arrangement of their rights which, if approved by the requisite majority and then by the court, is...more

Goodwin

UK Corporate Insolvency and Governance Act 2020 Brings Significant Changes to Law

Goodwin on

The Corporate Insolvency and Governance Act 2020 received royal assent on 25 June 2020. Many of the provisions of the act are based on the bill which was initially proposed pre-COVID-19, with a framework having been set out...more

Dechert LLP

COVID-19 Coronavirus Business Impact – proposed Coronavirus Job Retention Scheme taxation and clawback regime announced

Dechert LLP on

In this OnPoint we report on the UK Government’s recently announced consultation on the taxation and clawback regime which will apply in relation to grants made to employers under the Coronavirus Job Retention Scheme (“the...more

Jones Day

Directors' Duties—A European Overview: Financial Distress and COVID-19

Jones Day on

A company or group's financial distress causes significant turmoil for its owners, directors, managers, employees and often its suppliers and other creditors. For directors in particular, there are significant...more

Dechert LLP

The UAE Bankruptcy Law: Stepping up to the challenges raised by the COVID-19 crisis

Dechert LLP on

With the significant strain placed on market participants as a result of the combined impacts of the global COVID-19 pandemic, the oil price war and the ensuing liquidity and credit crunches, we expect that a number of...more

Orrick, Herrington & Sutcliffe LLP

COVID-19 UK: Finance & Restructuring – Suspension Of Wrongful Trading And Protecting Directors From Personal Liability – Insight

Note: This Insight has been updated since originally published on March.24.2020 with the title "COVID-19 - Protecting Directors from personal liability during uncertain times". We are amid a black-swan event that is...more

Skadden, Arps, Slate, Meagher & Flom LLP

UK Directors COVID-19 Update

As the coronavirus/COVID-19 crisis deepens, U.K. businesses are facing significant challenges. Many companies are having to react to mandatory operating restrictions, dramatic drops in demand, strained liquidity and...more

Foley & Lardner LLP

Managing the Commercial Impact of the Coronavirus: Top 5 Considerations When Operating in the Zone of Insolvency

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Given the uncertainty of the effects of this pandemic on markets and industries in the U.S. and around the world, many businesses are now confronting significant and unique challenges which are causing financial distress...more

Buckingham, Doolittle & Burroughs, LLC

Dear YouDig? Pierce the Veil and Get to Mr. Shade

Dear YouDig? When we first met, the contractor’s owner pulled into the site in his tricked out red pickup and promised us the stars and the moon. Unfortunately, all we ended up with was the pits! We ended up with a leaky...more

Moritt Hock & Hamroff LLP

A Guaranty for Every Need: An Overview of the Variety of Loan Guaranties-and How to Select the Right One

Underwriting a commercial credit facility is a process of weighing various risk mitigators until the lender is satisfied that the potential for loss is within its tolerance. By evaluating collateral value, credit history,...more

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