Japan: Enterprise Value Charge – Japan’s new floating charge-like security interest
Global Restructuring & Insolvency
by lseavey
1M ago
In brief On 7 June 2024, the National Diet of Japan enacted the Act on the Promotion ofCash Flow-Based Lending (“Act”). The effective date of the Act will be separatelydetermined within two and half years from its promulgation on 14 June 2024.The Act will bring into effect a new type of security interest called the [...] The post Japan: Enterprise Value Charge – Japan’s new floating charge-like security interest appeared first on Global Restructuring & Insolvency ..read more
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Supreme Court Clarifies Exceptions to Fresh Start Principle in Canadian Bankruptcies
Global Restructuring & Insolvency
by lseavey
2M ago
The general rule in bankruptcy is that a debtor receives a “fresh start” and is discharged from prior debts, but this is subject to certain exceptions. Subsection 178(1) of the Bankruptcy and Insolvency Act (BIA) sets out eight classes of debts that are not released by an order of discharge including an exception for debts that arise out [...] The post Supreme Court Clarifies Exceptions to Fresh Start Principle in Canadian Bankruptcies appeared first on Global Restructuring & Insolvency ..read more
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Australia: Garuda airlines wins argument for foreign state immunity in the Australian High Court
Global Restructuring & Insolvency
by lseavey
5M ago
In brief The High Court has confirmed the decisions of the NSW Supreme Court and Court of Appeal, that attempts in Australia to wind up the national flag-carrier airline of the Republic of Indonesia, PT Garuda Indonesia Limited (Garuda), cannot proceed. The airline is a “separate entity” of the Indonesian government. As such, it successfully relied on its arguments to assert foreign state immunity in this case. Whilst similar provisions exist in other legislation, including in the United Kingdom and Singapore, to date courts in other countries have not been asked to consider the scope of the e ..read more
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Unique issues for WeWork’s landlords in the event of a global restructuring
Global Restructuring & Insolvency
by lseavey
1y ago
In brief With a potential WeWork restructuring on the horizon, this article explores some unique issues landlords may face under their WeWork leases, with a focus on how courts around the world might address them. Key takeaways Landlords have built spaces that specifically cater to WeWork’s focus on co-working arrangements. As WeWork attempts to shed leases in a restructuring, landlords may be left with specially built spaces that are difficult to re-let. This may be particularly difficult when landlords have agreed in their WeWork leases not to compete for a period after termination of the le ..read more
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United States: The New Golden Rule for Payment of Default Interest upon Reinstatement of a Debt Agreement?
Global Restructuring & Insolvency
by lseavey
1y ago
This article was first published on Law360.com and reproduced with permission from Law360. The Differences Between Assumption and Reinstatement under the Bankruptcy Code Although a debt agreement may be considered a contract under which both parties have ongoing obligations, section 365(c)(2) of the US Bankruptcy Code expressly prevents a debtor from treating it as an “executory contract” that a debtor may “assume” or “reject” under section 365. Instead, the debt agreement analogue to assumption is reinstatement under section 1124(2), the provision that effectively allows a debtor to “assume ..read more
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United States: Even a Contract for Vice Services Doesn’t Count as an Unassignable Personal Services Contract Under Section 365 of the US Bankruptcy Code
Global Restructuring & Insolvency
by lseavey
1y ago
One of the benefits the US Bankruptcy Code offers debtors is the ability to assign freely contracts under which the debtor has ongoing performance obligations, even if the underlying contract contains a restriction or prohibition against such assignment. Section 365 of the Bankruptcy Code has its limits and does impose certain conditions to such assignment, such as the curing of defaults under the contract (other than so-called “ipso facto” defaults) and the requirement that the assignee be capable of future performance under the contract. One other limitation on the Bankruptcy Code’s freedom ..read more
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Japan: Japan to reform secured transactions law for the first time in 120 years
Global Restructuring & Insolvency
by lseavey
1y ago
On 20 January 2023, the Interim Proposal on the Reform of Secured Transaction Law (“Interim Proposal“) was published by the Japanese government. The Interim Proposal is, among other things, intended to govern security interests created by secured transactions, such as security assignments and sales with retention of title, that have been recognized by court precedents. The Interim Proposal also considers the introduction of a new type of security interest over all the assets of a company’s business. In this article, we briefly discuss key topics with respect to such security interests and the ..read more
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Australia: 2022 TMA Australia National Conference – Talking to clients about transition
Global Restructuring & Insolvency
by fmatson
1y ago
Taking on the challenges, opportunities and benefits of talking about the energy transition and sustainability The importance of taking into account stakeholder attitudes to Environmental, Social and Governance (ESG) issues as part of business generally, but also a turnaround strategy, was highlighted in this session. Such stakeholders include customers, suppliers, investors and capital providers, which are also looking at their own ESG risk and strategy as part of the overall picture of a business. The session highlighted the extensive analysis and reporting banks and other business in key in ..read more
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United Kingdom: Collateral Appropriation – in a “commercially reasonable manner”
Global Restructuring & Insolvency
by lseavey
1y ago
ABT Auto Investments Limited vs. Aapico Investment Pte Ltd and Ors [2022] EWHC 2839 (Comm.) In brief A cross-practice group in the London office of Baker McKenzie — led by Restructuring Partner, Priyanka Usmani, Disputes Resolution Partner Charles Thomson and Banking Partner Matthew Cox — represented Aapico who were successful in their argument that they had validly appropriated shares in a private company under The Financial Collateral Arrangements (No. 2) Regulations 2003 (“Regulations“). Key takeaways This is the first time that the English courts have had the opportunity to consider the m ..read more
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Spain: The Transposition of the Restructuring Directive in Spain
Global Restructuring & Insolvency
by lseavey
1y ago
In late August 2022, the Spanish Parliament passed the transposition into Spanish law of the Directive (EU) 2019/1023 of the European Parliament and of the Council, of June 20th 2019, on Preventive Restructuring Frameworks. The draft of this new Act was subject to multiple amendments and created great local expectations (also considerable controversy). The text finally enacted in Law 16/2022 introduces major reforms in the insolvency field which we hereby depict. Introduction of the so-called “Restructuring Plans” The transposition of the Restructuring Directive has entailed the abolishment of ..read more
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