Insolvency Blog -

Luca Cordero di Montezemolo, Chairman of Ferrari, today graphically described the strengths of Italian industry in terms of its people and their passion. Likening a Ferrari to a beautiful woman, he also said that German cars are great - like a freezer - good, efficient engineering! In a keynote address celebrating INSOL Europe's 30th anniversary, he noted that Ferrari had undergone a variety of restructurings in the 60 years since it first won the British Grand Prix at Silverstone, as it did again in 2011. Clearly proud of his company's European Workplace of the Year award in 2007, he...

Click here to continue reading.

Mercer & Hole's Chris Laughton is in Venice hosting this morning's INSOL Europe's Annual Congress 2011. Here's what Chris is expecting over the next couple of days. "My final job as President of INSOL Europe is to host this year's conference in Venice. The last few days of preparations have been busy, but have brought home just how much has gone on. I can't pre-empt conference announcements, but to touch on some highlights: the European Insolvency Case Register is launching; a number of serious academic initiatives are to be announced; detailed and learned submissions on proposed changes to the European...

Click here to continue reading.

Insolvency Lawyers' Association's Response to the draft Insolvency (Amendment) (No.2) Rules 2011 I thoroughly endorse the Insolvency Lawyers' Association's response to the Government's proposed amendments to the law on pre-pack insolvencies, which is accessible at  http://www.ilauk.com/news/insolvency_and_restructuring_news/ and is reproduced below. 1. Introduction 1.1 This is the ILA's summary response to the draft Insolvency (Amendment) (No.2) rules 2011 (the "Draft Rules") published by the Insolvency Service on 16 June 2011. It has been prepared on behalf of the ILA by its Technical Committee (the "Committee"). 1.2 The ILA provides a forum for c.450 full,...

Click here to continue reading.

It is standard practice for UK banks to require anyone giving a personal guarantee whose relationship with the debtor is not purely commercial, typically a wife for her husband’s business, to take independent legal advice and follow the guidelines laid down in the Etridge case [2001]. In a recent case a loan to a hotel development company, of which both the husband and wife were directors and shareholders, was provided on the basis of personal guarantees secured by way of a charge on the matrimonial home. The company ran out funds and the bank appointed Administrative Receivers who sold...

Click here to continue reading.

With continuing demand for its quality gravure printed products, the insolvency of the UK branch of a European network gives rise to an investment opportunity. With orders still to fulfil, cessation of trade was due to a lack of funds to buy consumables – not due the lack of orders. Our TV channels are full of DIY programmes and people across the UK and Europe are getting more and more adventurous about making their house a home. Combined with the decline in new house sales, the renovation and redecorating market is burgeoning. How extraordinary then that a successful UK wallpaper,...

Click here to continue reading.

HMRC’s latest comment concerning ‘Time to Pay’ (TTP) arrangements has stated that TTP will not be available where companies are paying out dividends to their shareholders. It is HMRC’s opinion that the cash should be used to pay tax before paying dividends the company can not afford! This will clearly hit hardest those companies where directors have chosen to receive remuneration on a dividend basis rather than by way of salary. The adoption of HMRC’s stance means that two businesses in a similar financial position will receive different levels of support simply...

Click here to continue reading.

 The Insolvency Service is still "in listening mode" in relation to its February 2011 Consultation on Reforms to the Regulation of Insolvency Practitioners, according to a presentation on 15 June by its Director of Policy, even though the consultation is officially closed. That better regulation is required is beyond doubt, but how to achieve it proportionately and cost-effectively, in a way that gives confidence to users of insolvency services and all those affected by insolvency, including the insolvency profession, is the challenge. Recognising that a single independent regulator is an unattainable ideal, my principal suggestions - and this is a personal...

Click here to continue reading.

Listing in its Annexes the insolvency procedures to which the European Insolvency Regulation applies should assist in bringing certainty to the application and use of the Regulation. But can we really be certain? Take the Sauvegarde Financière Accélérée in France, which is not listed in any annexe at the time of writing. It is a separate procedure from Sauvegarde (which is listed). Moreover, Sauvegarde is not an insolvency procedure in France, but is recognised there as a pre-insolvency mechanism. Does it therefore constitute a collective insolvency proceeding (because if not,...

Click here to continue reading.

Directors appointing administrators under paragraph 22(2), Schedule B1, Insolvency Act 1986 must give notice of intention to appoint to the company (pursuant to paragraph 26(2), Schedule B1, Insolvency Act 1986 and Rule 2.20(2)(d), Insolvency Rules 1986). The "record of the decision of the directors" to make the appointment required by Rule 2.22 must be of a valid board resolution in compliance with the requirements of the company's articles at a meeting properly convened with notice. So found Sir Andrew Morritt (Chancellor) in Minmar (929) Ltd & Teejinder Paul Chohan v Freddy Khalatschi & Martin John [2011] EWHC 1159(Ch), holding the appointment of administrators in that...

Click here to continue reading.

HMRC recently issued statistics for the Business Payment Support Service for the three months ended March 2011, their headlines, as you would expect, are the level of support they have provided to date and the reducing level of applications received since the scheme was introduced at the end of 2008. A closer investigation of the statistics highlights an ever increasing level of applications being refused. During 2009 approximately 240,000 applications were received of which only 2.7% were declined. In 2010 the figures were 139,000 and 6.0% respectively, whilst the figures for the three months to March 2011 are 33,000 and 10.1%. Perhaps the most worrying statistics are revealed when one compares...

Click here to continue reading.