Zone of Insolvency

Zone of Insolvency

Supreme Court: Bankruptcy Code 363(m) does not limit appellate jurisdiction over sale orders

By Eric Daucher (US), Jason Blanchard (US), Michael Berthiaume (US) and Emily Hong (US) on Posted in Uncategorized
On April 19, 2023, the US Supreme Court unanimously held that Section 363(m) of the Bankruptcy Code is not “jurisdictional,” and therefore does not limit a court’s authority to hear an appeal of a bankruptcy sale order (even if it does limit a court’s ability to void the sale itself). This ruling resolves a circuit… Continue Reading

When is a Cayman Islands liquidation not a foreign proceeding?

By Francisco Vazquez (US) and Michael Berthiaume (US) on Posted in Bankruptcy Courts, US
INSOL International’s latest news update discusses a decision by a court in the Southern District of New York finding that a Cayman Islands liquidation under Section 92(e) of the Companies Act is not a foreign proceeding that can be recognized under Chapter 15 of the US Bankruptcy Code. View the article.… Continue Reading

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

US bankruptcy Court dismisses Ch. 15 case, bars foreign representative from appearing before court

By Francisco Vazquez (US) and Michael Berthiaume (US) on Posted in Bankruptcy Courts, US
INSOL International’s latest news update discusses the dismissal of a chapter 15 case and the foreign representative now barred from appearing before the United States Bankruptcy Court for the Northern District of Illinois. View the article here INSOL News Update.… Continue Reading

No amendment to the ranking of security rights under the Dutch Scheme (WHOA) procedure

By Bas van Hooijdonk on Posted in Europe, Global
The Rotterdam District Court, the Netherlands, has ruled that an amendment to the ranking of security rights is not possible under the Dutch Scheme procedure (WHOA), without the consent of the relevant secured creditors. While there is still ambiguity about the (im)possibilities of amending creditors’ rights under the WHOA, the ruling is a welcome clarification… 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

Looking forward to the revival of the pre-pack In the Netherlands

By Koen Durlinger on Posted in Europe
The pre-pack was widely used as a restructuring tool in the Netherlands in the aftermath of the global financial crisis. The process was developed by the Dutch restructuring market and facilitated by the majority of Dutch courts. However, as a consequence of the judgment of the European Court of Justice (ECJ) in the Estro-case in 2017,… Continue Reading