In a September 18, 2015 order, the U.S. District Court for the Southern District of New York affirmed a bankruptcy court order denying administrative claim treatment to Hudson Energy Services, LLC (“Hudson”) for its retail sales of electricity to the
Global Restructuring Watch
Providing updates and commentary on global restructuring and bankruptcy law
Global Restructuring Watch, published by Reed Smith LLP, focuses on legal issues related to corporate restructuring, insolvency, and bankruptcy across multiple jurisdictions. The blog covers topics such as mass redundancies following insolvency, airline insolvency protections, bankruptcy proceedings involving environmental agencies, and the impact of economic disruptions like the COVID-19 pandemic on various industries. It also addresses legal compliance in restructuring scenarios, employee consultation obligations, and government policy responses affecting distressed companies. The content is aimed at providing insights into the legal and regulatory challenges faced by companies undergoing financial distress and restructuring processes globally.
Latest from Global Restructuring Watch - Page 6
District Court Confirms Netting/Setoff Practices
In a recent decision related to the SemCrude bankruptcy, the federal district court upheld the Bankruptcy Court’s rulings on the efficacy of certain common risk-mitigation tools used in the energy trading and marketing business – namely product payment netting and…
Prohibitions on Restrictions to Assignment of Receivables
Many businesses assign or charge their receivables in order to obtain finance, and in many cases, to improve cashflow. Following the financial crisis of 2008, alternatives to bank-led finance have been sought by businesses, with the government making efforts to…
Brazil, bribes and backward tracing – only in Jersey
The Municipality of Sao Paulo and the Republic of Brazil successfully defeated an appeal from two BVI registered companies to the Privy Council which considered what the circumstances are, if any, where backward tracing would be permitted.
Background
The two…
Section 236 of the UK Insolvency Act 1986 – extra-territorial effect?
The English High Court rejects an application by the Joint Special Administrators of MF Global UK Limited (“MF Global”) for an order seeking the production of documents pursuant to section 236 of the Insolvency Act 1986 (the “Act”). In doing…
French Supreme Court rules out liability for undercapitalising companies
In this article, Anker Sorensen, a senior partner of the Financial Industry Group of Reed Smith in Paris, practicing predominantly in the area of Corporate and Restructuring, discusses two recent decisions rendered by the Commercial chamber of the French Supreme…
English schemes of arrangement: some practical advice for proponents
Van Gansewinkel Groep BV, Re [2015] EWHC 2151 (Ch)
In what appears to be a growing trend, the High Court in England has sanctioned another scheme of arrangement involving non-English companies. Last week’s judgment from Mr Justice Snowden joins an…
The UK continues its objective stance on rescue procedures
The High Court has considered whether a winding-up petition is permitted where the Petitioner has a collateral purpose for bringing the petition. The collateral purpose, also referred to as an ulterior motive, would result in the Petitioner making a gain,…
Courts in New York and Singapore reach opposite conclusions on the validity of interpleader applications arising out of the OW Bunker bankruptcy
On 7 November 2014, OW Bunker A/S (“OW”), a global supplier and trader of marine fuel, filed for bankruptcy in Denmark. Further bankruptcies of OW subsidiaries and affiliates swiftly followed, including the bankruptcy of certain U.S. and Singapore-based OW entities. Protective…
Forum shopping – the end of an era?
Introduction
On 20 May 2015 the European Parliament adopted the recast Insolvency Regulation (the “Recast Regulation”) amending the existing Council Regulation (EC) (No. 1346/2000) on Insolvency Proceedings (the “Regulations”). Amongst the changes implemented by the Recast Regulation is the incorporation…