Commence insolvency proceedings

Share Tweet Plus One Pin It Email Print By: Aasavri Rai July 5, 2018 12:15 pm Change Font Size The Insolvency and Bankruptcy Board of India has notified the revised norms for the resolution of insolvency process and has paved way for home buyers to seek relief as financial creditors, putting in place clear timelines to be followed by resolution professionals and permitting withdrawal of insolvency applications subject to certain conditions. The board has mandated that a resolution professional needs to determine whether a corporate debtor had indulged in fraudulent transactions within a specified time period during the resolution process. The IBBI (Insolvency Resolution Process for Corporate Persons) Regulations were amended, pursuant to an ordinance amending the Insolvency and Bankruptcy Code (IBC). In cases where there is no agreed-upon interest rate between the parties, the voting share of such a creditor would be in proportion to the financial debt, including an … [Read more...] about Revised Norms for Home Buyers Under Insolvency Proceedings Notified [Read Notification]

By: Tariq Khan & Byron Sequeira 29 April 2019 12:04 PM GMT To borrow the golden words of Justice Rohinton F. Nariman in Swiss Ribbons Pvt. Ltd. & Anr. vs. Union Of India WP(Civil) No. 99 of 2018 whereby upholding the Constitutional validity of the Insolvency and Bankruptcy Code, 2016 ("IBC") it was held as under: "85. The Insolvency Code is legislation which deals with economic matters and, in the larger sense, deals with the economy of the country as a whole. Earlier experiments, as we have seen, in terms of legislations having failed, 'trial' having led to repeated 'errors', ultimately led to the enactment of the Code. The experiment contained in the Code, judged by the generality of its provisions and not by so-called crudities and inequities that have been pointed out by the petitioners, passes constitutional muster. To stay experimentation in things economic is a grave responsibility, and denial of the right to experiment is fraught with serious … [Read more...] about 40 Important Judgments On Insolvency And Bankruptcy Code, 2016 [Part-1]

Last year we reported (here) that Alberta’s Redwater Energy Corporation decision signaled good news for lenders and noteholders secured by Alberta O&G assets because the federal Canadian Bankruptcy and Insolvency Act (“BIA”) prevailed over conflicting provisions in the provincial regulations promulgated by the Alberta Energy Regulator (“AER”). Resolving the conflict in favor of federal law under the doctrine of paramountcy means that secured lenders’ claims have priority over environmental clean-up costs because receivers and bankruptcy trustees cannot be held liable for the remediation costs resulting from abandoned and non-producing wells under the BIA.We announced that the decision was a boon for Canadian O&G lenders, but our optimism was tempered by a great big *asterisk* because the decision remained subject to reversal on appeal, and the issue might not be settled “until the Canadian Supremes ultimately sing.” As expected, … [Read more...] about Canadian Bankruptcy and Insolvency Act: “Alberta, Alberta, You’re Still on My Mind”

Australia is making several significant reforms to its insolvency legislation – with more changes likely to come – to provide much-needed comfort for directors and to align legislation on ipso facto clauses in order to prevent contractual terminations simply as a result of the commencement of an insolvency proceeding. (See the Productivity Commission Report on Business Set-up, Transfer and Closure (available here)).In the first of a series of reforms, the Insolvency Law Reform Bill 2016 passed both legislative houses on February 22, 2016. While the latest bill consists of relatively minor changes relating to the provision of information to stakeholders in external administration proceedings and the remuneration and registration of registered insolvency practitioners, it signals the first steps toward more comprehensive changes. The details of the forthcoming amendments are still being debated, but expect them to become effective in mid-2017 and to continue the progress to a … [Read more...] about A Major Leap Forward for Australian Insolvency Laws

On June 22, Sears Canada Inc. ("Sears Canada") and certain affiliates1 (collectively, the "Sears Canada Group") sought and obtained insolvency protection under the Companies' Creditors Arrangement Act (CCAA) from the Ontario Superior Court of Justice (Commercial List) (the "Court"), which in turn appointed FTI Consulting Canada Inc. (FTI or the "Monitor") as monitor. During the restructuring process, Sears Canada's Board of Directors and management team will remain in control of the day-to-day operations of the business, subject to the supervision of the Monitor.Sears Canada is an independent Canadian digital and store-based retail company. While primarily a company involved in the sale of goods, Sears Canada operates other business lines, including transportation and logistics services, call centers, sales of mobile phones and telephone plans, and warranty and maintenance programs. Despite troubled times, Sears Canada Group remains one of Canada's largest retailers with a presence in … [Read more...] about Sears Canada Files for CCAA Protection: Distressed Investor’s Overview of US Bankruptcy and Canadian Insolvency Law