Challenging CVAs – It’s a Challenge

15 October 2019

Approximately 16 high street stores have closed their doors every day in the first half of 2019, while only nine opened, resulting in a net decline of 1,234 chain stores on Britain’s top 500 high streets. Many chains entered into Company Voluntary Arrangements to manage their financial troubles, but such arrangements can prejudice the interests of some creditors.

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Can a Company in a CVA Enforce an Adjudication Award?

14 June 2019

In Indigo Projects London Ltd v Razin & Anor the Court declined to enforce an adjudicator’s decision as it would interfere with the accounting exercise of Indigo’s Company Voluntary Arrangement (CVA).

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A Director’s Duty

18 March 2019

When a company is solvent, the primary duty imposed on directors is to promote the success of the company for the benefit of its shareholders. This duty is codified at section 172(1) of the Companies Act 2006. However, that position changes when a company is insolvent, or close to insolvency.

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Court of Appeal shuts the door on insolvent companies adjudicating

24 January 2019

Fladgate acted for the successful respondent in MJ Lonsdale v Bresco. The Court of Appeal decision was handed down this morning. The judgment will inevitably impact on the construction industry. Digby Hebbard and Oliver Tobin discuss this important decision.

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Found you! – Peering behind the corporate veil

8 November 2018

In dismissing a defendant’s ‘corporate veil’ defence, the High Court has made it clear that it can and will allow claims to be made against directors and shareholders in the appropriate circumstances (Palmer Birch v Lloyd & Anor [2018] EWHC 2316 (TCC).

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Purpose or Consequence?

27 July 2018

The recent Court of Appeal decision in JSC BTA Bank v Ablyazov and anr [2018] EWCA Civ 1176, has clarified the “prohibited purpose” test under section 423 of the Insolvency Act 1986 (IA). The litigation is part of the large scale fraud involving Mukhtar Ablyazov, the first defendant and controller of JSC BTA Bank (Bank) […]

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Solvency statement: breach of directors’ duties results in personal liability

25 May 2018

Three company directors were found to have acted in breach of duty, and thus have assumed personal liability in connection with a reorganisation which left the company unable to meet its own liabilities without the assistance of its subsidiaries in LHR Services Ltd (in Liquidation) v Raymond Arthur Trew, Jason Marcus Brewer, Derek O’Neill. As […]

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Insolvency – Challenging pre-pack sales

24 May 2018

A ‘pre-pack’ is where a company in financial difficulty arranges the sale of its business before entering administration (a form of insolvency process). Immediately upon the company entering administration, and without first notifying creditors, the administrators sell the company’s assets to a third party. Creditors of the company that has entered administration are only likely […]

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Terminating contracts: proceed with care

18 May 2018

Following the recent upturn in the number of companies entering insolvency processes, it is important to consider what steps you should take if you have a contract with a company in financial trouble. Your first instinct might be to end the contract immediately; however, the recent decision in Phones 4U Ltd (in administration) v EE […]

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Crossed wires as a phone charger company dies

9 April 2018

In the UK 85% of adults have a smartphone and nearly all use their phone every day.[1] So a company with a device that automatically backs up your phone whilst charging should be flying high. However, this was not so for Meem SL Limited (Meem). In Re Meem SL Limited (in administration)[2], against the backdrop […]

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