Restructuring and Insolvency

A guide to administrators' remuneration, disbursements and expenses.

A note on the amendments to rule 5 of the Insolvency Rules 1986 (SI 1986/1925) relating to individual voluntary arrangements made by the Insolvency (Amendment) Rules 2010 (SI 2010/686), with effect from 6 April 2010.

This note addresses how a trustee in bankruptcy identifies, protects and deals with his interest in the bankrupt's family home. It discusses the effect of a bankruptcy order on trusts of land and rights of occupation affecting the bankrupt's family home. It also sets out the grounds for a trustee's application for an order for possession and sale of the bankrupt's home, considering the impact of exceptional circumstances and the bankrupt's death.

How to carry out an asset purchase or the purchase of a business as a going concern where the seller is in administration or administrative receivership.

A note considering the issues for employees seeking to claim against an employer that has entered a formal insolvency procedure. The note provides practical guidance on bringing claims where a stay of legal proceedings exists, including applications for permission to lift the stay and how to claim debts from the employer's insolvent estate.

A guide to when a company can be struck off the register of companies and dissolved using the voluntary strike off procedure in section 1003 of the Companies Act 2006.

This practice note provides an overview of compulsory liquidation, or winding-up. It discusses situations in which a company can be placed into compulsory liquidation and what happens after a compulsory liquidation order is made. For further information on how to place a company into compulsory liquidation see Checklist, How do I place a company into compulsory liquidation?. This note does not cover voluntary liquidations, which are considered in Practice note, Voluntary liquidation: What is it and how do I place a company into voluntary liquidation?

This note looks at the key stages involved in restructuring corporate debt.

This note considers how debt equity swaps may be used in corporate restructuring. It examines the nature of debts and the different ways they can be structured. The note focuses on the approach of the company's bank or other creditors to debt equity swaps, as they usually drive the structure.

This note provides links to the relevant primary sources (including legislation, guidance, and consultation and policy documents) on the CRC Energy Efficiency Scheme.

This note contains a glossary of the terms defined in the CRC Energy Efficiency Scheme Order 2010 (SI 2010/768), the CRC User Guide and other guidance published by the Department of Energy and Climate Change (DECC) and the Environment Agency. It also contains a list of commonly used abbreviations relating to the CRC Energy Efficiency Scheme.

Suggested answers to some common questions asked by creditors of insolvent companies and companies in financial difficulties.

A note outlining the changes to the law on the dissolution and restoration to the register of companies to be made by the Companies Act 2006 (2006 Act). For a link to the 2006 Act, see Companies Act 2006: publication of final text. For general background to the 2006 Act, see Practice note, Companies Act 2006: materials. Part 31 (dissolution and restoration to the register) will come into force on 1 October 2009.

A note on the key implications of bankruptcy for employment relationships, including consideration of restricted roles for bankrupt individuals, an employer's options for dealing with a bankrupt employee and the effect of bankruptcy on employment claims.

A note on how a transfer should be executed where the seller is bankrupt.

This note reviews the provisions of the Financial Collateral Arrangements (No 2) Regulations 2003 (SI 2003/3226). It looks at the various matters that should be considered under the Regulations when either a security, stock lending or a repo arrangement is being entered into in respect of financial collateral such as cash, financial instruments (such as shares in companies and other tradeable securities such as bonds) or credit claims (loans made available by credit institutions).

This note highlights the continuing implications of the harsh financial climate in 2010 for defined benefit and defined contribution pension schemes. It considers the practical steps that trustees and employers may take in dealing with the legal and regulatory issues arising, with links to related information.

A practice note on how to respond to the financial difficulties or insolvency of a company that owes you money, which considers how to press for payment from a distressed trading partner, key contractual issues and outlines the position of the unsecured creditor in an insolvency process.

A guide to the ways in which an administrator can extend the term of an administration, with links to a suite of standard documents for use when applying to court for an order extending an administration.

A note answering a question of how a superior landlord is affected if a liquidator disclaims a headlease where there is more than one subtenant (that is, there are subtenants of parts).

This Practice note stresses the importance of giving information to clients about costs. It summarises the requirements of the Solicitors Code of Conduct 2007, and other legal requirements, and provides suggestions for how best information on costs can be provided to the client, at the outset and throughout the retainer. Note: This note covers the requirements of the Solicitors Code of Conduct 2007 (in force from 1 July 2007 to 5 October 2011).  For the latest requirements, under the Solicitors Code of Conduct 2011, see the new version of this note, Practice note, Informing the client about costs: at outset of retainer and beyond. For details of the Solicitors Costs Information and Client Care Code 1999, see, Practice note, Informing the client about costs: at outset of retainer and beyond pre 2007.

A note on whether a Law of Property Act (LPA) receiver can transfer property when the appointing bank has subsequently gone into administration.

This practice note sets out the potential consequences of starting winding up proceedings against a company. It explains why serving a statutory demand or issuing a winding up petition may not always be an appropriate means of enforcing a debt. It also sets out alternative courses of action that may be available to a creditor of a company.

An overview of the functions of a liquidator and his or her powers in relation to different types of assets.

A practice note on the issues to be considered when litigation is pursued on behalf of an insolvent company. It deals with the types of claim that may be available in corporate insolvency (whether administration, liquidation or receivership), the need for sanction, the claimant's potential liability for costs, funding options and settlement of claims.

This note deals with the statutory framework relevant to surveillance of employee e-mail and internet usage. Monitoring employee activity of this sort within the workplace engages the: Data Protection Act 1998 and accompanying guidance in the Information Commissioner's Employment Practices Data Protection Code. Human Rights Act 1998. Regulation of Investigatory Powers Act 2000. Telecommunications (Lawful Business Practice) (Interception of Communications) Regulations 2000 (SI 2000/2699). The note also gives practical advice on implementing employee monitoring systems and policies.

An introduction to pension provision in the UK and how an occupational pension scheme can affect the work of a finance lawyer.

A note on presenting bankruptcy proceedings against individuals in the London insolvency district. It sets out which bankruptcy proceedings fall within the London insolvency district and whether the High Court or Central London County Court has jurisdiction over particular bankruptcy proceedings. This note supplements the more general guide to bankruptcy proceedings contained in Practice note, Personal insolvency procedures: overview.

This practice note considers what amounts to a redundancy situation and when an employee's dismissal will be by reason of redundancy.

This note considers the statutory scheme under the Employment Rights Act 1996 which relates to the offer of suitable alternative employment and the statutory trial period, as well as case law on what constitutes suitable alternative employment. It also considers the practicalities of offering alternative employment to potentially redundant employees.

This practice note considers the operation of enhanced redundancy payment schemes, including the circumstances in which they may be contractually binding on employers, and when they may fall foul of age discrimination laws.

This practice note sets out the employee's right to time off to look for work or arrange training once they have been given notice of dismissal due to redundancy.  

An explanation of the particular issues which arise when a buyout is being conducted in a rescue or insolvency situation.

This note is a practical guide for companies that receive a winding up petition. A winding-up petition may have serious consequences for a company and it is crucial that its directors promptly take appropriate action. Among the isses considered are validation orders, injunctions to prevent a petition being advertised, the consequences of paying the petition debt, and the grounds on which a petition can be challenged.

A note on what happens where land is sold subject to overage provisions that are protected by a restriction on the register, and the landowner then becomes bankrupt. If the trustee in bankruptcy sells the land to a third party, will the restriction requirements have to be satisfied?

This note provides an overview of the key features of high yield bonds issued in the UK and in the US, and the principal issues to be considered in the context of a corporate debt restructuring involving high yield bond obligations. These include the main differences between New York and English law governed bond documentation and related legal and regulatory issues.

A guide to the procedures under UK corporate insolvency law to enable the adjustment of antecedent transactions and the protection of the insolvent company's assets for the benefit of its creditors. This note covers disclaimer, transactions at undervalue, preferences, extortionate credit transactions, invalid floating charges, transactions defrauding creditors, contribution by past shareholders and directors, and common law rules.

A guide to what to look for in a company's accounts when assessing its financial position and the warnings signs that may indicate financial difficulty or potential insolvency.

This practice note provides guidance as to how the court will consider an application for security for costs on the ground that the claimant is an insolvent company (CPR rule 25.13 2 (c)). To be read alongside Practice note, Security for costs: an overview and Practice note, The procedure for applying for security for costs.

A note on taking security over choses in action.  A chose in action is an asset that can only be claimed or enforced by action at law or equity, rather than by taking physical possession of the asset. The note looks at how to take security over various types of choses in action such as rights under contracts, debts, financial instruments and cash deposits in bank accounts.

This note outlines the provisions of The Credit Institutions (Reorganisation and Winding Up) Regulations 2004 (SI 2004/1045), and considers them in the context of European Parliament and Council Directive 2001/24/EC on the reorganisation and winding up of credit institutions.

A note dealing with the position under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) where the transferor is insolvent. In particular, the note considers the different rules under TUPE which apply to businesses that are subject to "relevant insolvency proceedings" or "bankruptcy proceedings or any analogous insolvency proceedings".

This practice note describes the two types of voluntary liquidation: members' and creditors' voluntary liquidations. It explains how a company can be placed into voluntary liquidation and the effects of a voluntary liquidation. For information on compulsory liquidations, see Practice note, Compulsory Liquidation: what is it and when can a company be placed into compulsory liquidation? and Practice note, Compulsory Liquidation: How do I place a company into compulsory liquidation?

This practice note examines the steps necessary to wind up an occupational pension scheme.