Zone of Insolvency

Zone of Insolvency

Category Archives: Financial Restructuring & Insolvency

Subscribe to Financial Restructuring & Insolvency RSS Feed

The role of AI in insolvency litigation: an enhancement but not a replacement for human lawyers in the administration of justice

By Claudine Salameh, Laura Johns and Simran Chawla on Posted in Australia, Financial Restructuring & Insolvency
Introduction A duty to act in the best interests of our clients goes to the heart of the legal profession, both functionally and ethically. Can our ability to fulfil this duty be enhanced by the use artificial intelligence (AI)? There is a common suggestion that AI can perform certain roles better than humans can. However,… Continue Reading

Norton Rose Fulbright’s global restructuring group releases the Q2 2023 issue of International Restructuring Newswire

By NRF Digital Team on Posted in Financial Restructuring & Insolvency, Global
International Restructuring Newswire Q2 2023Our global restructuring team has released its quarterly International Restructuring Newswire. Our new issue features articles from Hong Kong, Australia, the US, the UK and Canada to help you stay current on recent developments in restructurings in various jurisdictions around the globe.… Continue Reading

What debts are provable on a debtor’s insolvency? Part Two

By Jack Mead on Posted in Financial institutions, funds and creditor representation, UK
In the second of this two-part post, we continue our overview of claiming in a debtor’s insolvency. In particular we look at contingent debts, interest on debts, and debts in foreign currencies. For obvious reasons, the element of uncertainty in the value or even the existence of a contingent debt conflicts with the insolvency practitioner’s… Continue Reading

What debts are provable on a debtor’s insolvency? Part One

By Jack Mead on Posted in Financial institutions, funds and creditor representation, UK
Under English insolvency law, creditors “prove” for their debts against an insolvent debtor’s assets. They do this by submitting a ‘proof of debt’ form. Generally, submitting a proof of debt is necessary to allow the creditor to both receive a distribution from the assets (i.e. to get its money back) and to allow it to… Continue Reading

Small business restructuring in Australia – Two years on, is the new process working as intended?

By Claudine Salameh on Posted in Australia, Financial Restructuring & Insolvency
From 1 January 2021, Australia’s insolvency framework for small businesses changed. The purpose of the change was to assist small businesses, with debts under AUD $1 million, to survive – specifically, by providing these businesses with simpler, more flexible restructuring options outside the existing “one size fits all” voluntary administration and scheme of arrangement processes… Continue Reading

Unfair preference claims shot? Impact of Australian High Court’s rejection of peak indebtedness rule in Gunns case

By Laura Johns and Seraijah Choi on Posted in Australia, Financial Restructuring & Insolvency
Summary In a highly anticipated decision, the High Court of Australia has unanimously determined in Bryant & Ors v Badenoch Logging Pty Ltd [2023] HCA 2 that the peak indebtedness rule is not part of the unfair preference provisions in the Corporations Act 2001 (Cth) (Act).  The decision means liquidators will no longer be able… Continue Reading

Australian High Court banishes statutory set-off, sets up liquidator recoveries in unfair preference decision

By Laura Johns and Deborah Tsai on Posted in Australia, Financial Restructuring & Insolvency
In a landmark case, the High Court of Australia this month unanimously determined in Metal Manufactures Pty Limited v Morton [2023] HCA 1 (Morton) that set-off is not available against a liquidator’s unfair preference claim. The effect of the decision is that a creditor is not entitled to deduct any outstanding claim that it might… Continue Reading

Australian corporate insolvency reform: What can we expect in 2023?

By NRF Australian Restructuring Team on Posted in Australia, Financial Restructuring & Insolvency, Global
Overview There has been a growing appetite for corporate insolvency law reform in Australia in the last 18 months. In 2021, public consultations were completed on improvements to creditors’ schemes of arrangement and the treatment of insolvent trusts, and there was an independent review of the laws providing directors with a safe harbour from insolvent… Continue Reading

US Bankruptcy Court dismisses Ch. 15 case, bars foreign representative from appearing before it

By Michael Berthiaume (US) and Francisco Vazquez (US) on Posted in Bankruptcy Courts, Financial Restructuring & Insolvency, Global
Chapter 15 of the Bankruptcy Code was enacted to, among other things, foster cooperation between courts of the United States and courts of foreign countries “involved in cross-border insolvency cases.” 11 U.S.C. § 1501(a). In furtherance of this mandate, Section 1518 of the Bankruptcy Code requires a foreign representative to inform the US court of… Continue Reading

Norton Rose Fulbright’s global restructuring group releases the Q1 2023 issue of International Restructuring Newswire

By NRF Digital Team on Posted in Financial Restructuring & Insolvency, Global
International Restructuring Newswire Q1 2023Our global restructuring team has released its quarterly International Restructuring Newswire. Our new issue features articles from Canada, Germany, the US, France and China/Hong Kong to help you stay current on recent developments in restructurings in various jurisdictions around the globe.… Continue Reading

Norton Rose Fulbright’s global restructuring group releases the Q4 2022 issue of International Restructuring Newswire

By NRF Digital Team on Posted in Financial Restructuring & Insolvency, Global
Our global restructuring team has released its quarterly International Restructuring Newswire. Our new issue features articles from the US, Australia and Canada to help you stay current on recent developments in restructurings in various jurisdictions around the globe. Alto Maipo: Delaware ruling poses jurisdictional challenges for Chapter 11 debtors Financial crime in an economic downturn: tracing… Continue Reading

UK Supreme Court delivers landmark judgment on directors’ duties when a company faces insolvency

By Helen Coverdale on Posted in Europe, Financial Restructuring & Insolvency
Why is the decision important? For the first time, the Supreme Court has considered whether there is a common law duty on directors to act in the interests of creditors when a company faces insolvency, but is not yet in an insolvency process (the so-called twilight zone) (the Creditors’ Duty). Unanimously agreeing that such a… Continue Reading

Can restructuring plans strip out third party guarantees?

By Helen Coverdale on Posted in Financial Restructuring & Insolvency, UK, Uncategorized
The English High Court has considered whether the new restructuring plan under Part 26A of the Companies Act 2006 (CA 2006) can release claims against third party guarantors. This decision has important implications for guarantors and creditors holding third party security in a restructuring scenario. What was the background? The case had its origins in… Continue Reading

Global bankruptcy, financial restructuring and insolvency group releases the Q3 2022 issue of International Restructuring Newswire

By NRF Digital Team on Posted in Financial Restructuring & Insolvency, Global
Global bankruptcy, financial restructuring and insolvency group releases the Q3 2022 issue of International Restructuring NewswireOur global bankruptcy financial restructuring and insolvency team has released its quarterly International Restructuring Newswire.   Our new issue features articles from the US, the Netherlands, Germany/the UK and Australia to help you stay current on recent developments in restructurings in various jurisdictions around the globe. Hong Kong Court comments on the interplay between the Rule in Gibbs and… Continue Reading

Norton Rose Fulbright advises on award-winning airline restructuring deals

By NRF Digital Team on Posted in Financial Restructuring & Insolvency
Norton Rose Fulbright is proud to have advised on the following aviation restructuring transactions, which won awards from Airfinance Journal and Airline Economics: We advised Philippine Airlines Inc. (PAL) in connection with its pre-negotiated chapter 11 case which won Airfinance Journal’s 2021 Asia-Pacific Deal of the Year and Airline Economics’ 2021 Asia Pacific Restructuring Deal… Continue Reading

Insolvency insights in South Square Digest special edition with INSOL International

By Scott Atkins (AU), Noel McCoy (AU) and Lee Pascoe (AU) on Posted in Australia, Financial Restructuring & Insolvency, Global, UK
This special edition of the South Square Digest features collaborative articles with members of INSOL International, with a particular emphasis on transaction avoidance. Read the latest insights from Scott Atkins, Partner and President of INSOL International; Noel McCoy, Partner and member of INSOL International; and Lee Pascoe, Special Counsel and member of INSOL International. Evidence gathering… Continue Reading

Global bankruptcy financial restructuring and insolvency group releases the Q2 2022 issue of International Restructuring Newswire

By NRF Digital Team on Posted in Australia, Bankruptcy Courts, Europe, Financial Restructuring & Insolvency, Global, Singapore, US
Our global bankruptcy financial restructuring and insolvency team has released its quarterly International Restructuring Newswire. Our new issue features articles from Singapore, the US, the Netherlands, Canada, Italy and Australia to help you stay current on recent developments in restructurings in various jurisdictions around the globe.   Recent case law developments in Singapore’s restructuring and insolvency laws show… Continue Reading

Omar Salah discusses WHOA in International Insolvency Institute’s Global Perspectives podcast

By NRF Digital Team on Posted in Financial Restructuring & Insolvency, Global
On January 1, 2021, the Act on Court Confirmation of Extrajudicial Restructuring Plans, also referred to as the “Dutch Scheme” or “WHOA” (Wet Homologatie Onderhands Akkoord) entered into force. On this episode of Global Perspectives, Omar Salah, a partner in Norton Rose Fulbright’s Amsterdam office, discusses the reasons for the enactment of the WHOA, its key… Continue Reading

Use of public examination powers significantly increased by High Court of Australia

By Jeffery Black (AU) and Nathan Giacci on Posted in Australia, Financial Restructuring & Insolvency
In Walton v ACN 004 410 833 Limited (formerly Arrium Limited) (In Liquidation) [2022] HCA 3, the High Court of Australia handed down a decision regarding the purposes for which a Court may summon an officer of a corporation for examination about the corporation’s examinable affairs under s 596A of the Corporations Act 2001 (Act).… Continue Reading

Omar Salah appointed as CERIL Conferee

By NRF Digital Team on Posted in Europe, Financial Restructuring & Insolvency
Prof. Omar Salah, Partner at Norton Rose Fulbright’s Amsterdam office, has been appointed as Conferee of the Conference on European Restructuring and Insolvency Law (CERIL). CERIL is a non-profit organisation with a unique independent perspective on developments in restructuring and insolvency systems across Europe. It is a membership organisation of experienced and respected restructuring and… Continue Reading

Norton Rose Fulbright Financial Restructuring and Insolvency group recognized as ‘Practice Group of the Year’ by Law360

By NRF Digital Team on Posted in Financial Restructuring & Insolvency, US
Norton Rose Fulbright’s US Financial Restructuring and Insolvency group has been named a 2021 “Practice Group of the Year” in the bankruptcy category by Law360. The recognition is based on noteworthy representations in several significant and complex restructuring matters. Read more about this recognition here.… Continue Reading

Global bankruptcy financial restructuring and insolvency group releases the Q1 2022 issue of International Restructuring Newswire

By NRF Digital Team on Posted in Canada, Europe, Financial Restructuring & Insolvency, Global, UK, US
Our global bankruptcy financial restructuring and insolvency team has released its quarterly International Restructuring Newswire.   Our new issue features articles from Canada, Germany, the Netherlands, South Africa, the US and the UK to help you stay current on recent developments in restructurings in various jurisdictions around the globe. Steinhoff restructuring: The Dutch suspension of payments as an… Continue Reading

The use of mediation to improve global restructuring outcomes in a post-pandemic world

By Scott Atkins (AU) on Posted in Australia, Financial Restructuring & Insolvency, Global, Singapore, UK, US
Jurisdictions across the world have been seeking to simplify their domestic insolvency processes and create flexible restructuring alternatives to enable viable entities experiencing financial distress to have better prospects of recovery. In an article co-authored by Scott Atkins and Debra Grassgreen and published in the Global Restructuring Review, the authors discuss the potential uses of mediation… Continue Reading

John Martin appointed President of the International Insolvency Institute

By NRF Digital Team on Posted in Australia, Financial Restructuring & Insolvency, Global
Norton Rose Fulbright is delighted to announce that restructuring and insolvency partner, John Martin has been appointed President of the International Insolvency Institute, succeeding Debra Grassgreen. Having been a Board member of the International Insolvency Institute since 2016, John most recently served as a Vice President. At the Institute’s annual conference in New York this… Continue Reading