Phoenixing companies, which costs the Australian economy billions of dollars a year, is too easy, cheap, lucrative and is largely invisible, according to a new report into the practice. What is phoenixing? When a director strips cash and assets before hiding them and liquidating the company, then restarting Usually restarted under a different…
The Act specifically excludes this requirement for residential apartment buildings over three levels in height. The Home Building Compensation Fund (HBCF), like other mandatory home building warranty schemes that operate in other states, is meant to act as a last resort for homeowners if their builder fails to complete the works described under their contract…
The High Court has adjourned a bid by BHS administrators to take control of the company Dominic Chappell used to extract millions of pounds from the dying store chain. Duff & Phelps is calling for Retail Acquisitions to be wound up. Mr Chappell used the company to buy BHS for £1 from Topshop billionaire Sir…
Published: 23 Feb 2017 Author: Liz Sweeney and Sam Jadhav Applies to: England and Wales Restriction on disposal remains key as European Court of Justice (ECJ) gives its first ruling on the interpretation of the financial collateral arrangements directive in Private Equity Insurance Group SIA v Swedbank AS [2016] The ECJ recently delivered a judgment…
The main investigation into Corporate Commercial Bank (Corpbank), which collapsed in 2014, has been completed, the specialised prosecutors office announced on February 22. Prosecutors have charged 18 people after interrogating more than 400 witnesses. In June 2014 Corpbank, then Bulgarias fourth largest lender, suffered a bank run that deprived it of liquidity. It was put…
Indias corporate debt repayment rate is abysmally low: Only 25.7 cents to a dollar loaned (or Rs 17 on Rs 67 lent) ever returns to the lender after years of protracted recovery proceedings. The countrys debt recovery rates trail even the South Asia average (36.2 cents) and, obviously, the OECD average, says the World Bank.…
The collapse of Barings, Britain’s oldest merchant bank, was announced on this day in 1995, after one of its traders had run up trading losses of well over £800 million. It transpired that Nick Leeson had been making unwise speculative investments in futures contracts basically betting on market movements around the world while taking advantage…
Bus Éireann has warned that it could face insolvency by May and difficult decisions will have to be made urgently to avoid that prospect. Speaking at the Workplace Relations Commission after the breakdown of talks with unions, Acting CEO Ray Hernan said that losses had continue to increase in January by 1.5m. If that continued,…
New figures from the Insolvency Service show fewer people got a solution under the auspices of the State debt body. This has been put down to heavily-indebted people challenging refusals in the courts by lenders to give them a deal. However, there was a rise in the numbers of people being declared bankrupt in the…
Over 100,000 people could be made homeless by the banks and vulture funds through mass evictions in the coming months, the countrys insolvency experts claimed today. They fear that the financial institutions are about to embark on a concerted campaign of repossessions against the tens of thousands of homes in long-term mortgage arrears. The Association…