Stay informed with the latest in insolvency news and industry updates. We can keep you up to date with insolvency and finance information from around the world.
The matter of Salesio Kinyua Njagi and Nine Others v Invesco Assurance Company Limited [2021] (eKLR) dealt with the application of the law around the insolvency of insurance companies.
Public interest is of great concern to the insurance industry, necessitating its consideration when filing liquidation proceedings against such companies.
It is imperative to have clarity on the law that ought to govern the prosecution of insolvency of insurance companies, to ensure that the process safeguards the integrity of the insurance sector while simultaneously protecting the private interests of creditors.
The business of insurance, although primarily a matter of private contract, is characterised as one…
Missouri Eighth Circuit Court of Appeals affirmed a preliminary injunction on Tuesday, which blocks former President Joe Biden’s student debt relief plan from taking effect.
The plaintiffs in the case are the states of Missouri, Arkansas, Florida, Georgia, North Dakota, Ohio, and Oklahoma. The defendants include President Donald Trump and Denise Carter, the Secretary of the Department of Education (DOE). It’s important to note that President Trump and Carter have been substituted as parties to the proceedings per s. 43(c)(2) of the Federal Rule of Appellate Procedure since Biden and his administration have left office.
The seven states initiated the action against the president and the DOE in April 2024, arguing the Saving on a…
This week’s company insolvency statistics show accommodation and food services insolvencies were down 7% year-on-year from 3,737 in 2023 to 3,464 in 2024, and fell 29% when compared to the same month in the previous year (315).
Insolvencies in the sector saw an even bigger drop month-on-month, down 31% from 327 in November 2024 to 224 in December 2024.
“For some operators, December would have been the last roll of the dice to take advantage of the festive trade and build up a war chest of reserves,” says Saxon Moseley, partner and head of leisure and hospitality at RSM UK.
“However, there’s caution ahead, as operators try…
Doing business with a customer in the shadow of bankruptcy is risky.
A hallmark of bankruptcy law is equal treatment of similarly-situated creditors. The Bankruptcy Code frowns upon a debtor who, while insolvent, pays some creditors but not others in the run-up to bankruptcy – whether voluntarily or due to pressure. Under the Bankruptcy Code, payments by an insolvent debtor to creditors in the 90 days before bankruptcy, on account of an antecedent debt, are presumptively avoidable. That means if you get one of these “preference payments,” you may be forced to return it.
There are, however, defenses to a preference payment, one of which is the “ordinary course of business” defense. A recent decision from a bankruptcy…
Motivating clients to implement estate and income tax-efficient strategies in 2025 will be challenging for those clients who perceive the election’s outcome as favorable for tax purposes. Advisors know this is a priority and struggle with many clients who become paralyzed or stuck because of all the noise and uncertainty surrounding tax legislation.
I’ll explore two lines of reasoning to consider. I believe that the most effective way to motivate gun-shy clients is to educate them and give them intellectual certainty. It puts them in a mental environment where they’re able to make informed decisions and implement solutions.
First, let’s examine the history relative to taxes and debt to help clients understand where we are, where…
The financial creditors of would take a 99.5% haircut in the resolution of erstwhile Anil Ambani-promoted Reliance Big Private Limited’s insolvency case. The National Company Law Tribunal (NCLT), Mumbai Bench, has approved the resolution plan submitted by Manoj Kumar Upadhyay through his affiliate firm ACME Cleantech Solutions Private for the revival of Reliance Big Private Limited.
As per the resolution plan, the secured financial creditors of the Reliance Big would receive a sum of Rs 3.5 crore against their total admitted claims of Rs 484 crore. The resolution plan does not offer any money to unsecured financial creditors who had submitted total claims of Rs 515 crore. The plan also includes the issuance of…
The Alaska State Capitol is illuminated by sunlight on Feb. 14, 2025. (Eric Stone/Alaska Public Media)
State lawmakers are considering a new student loan repayment program to attract former Alaskans to return and serve as teachers and state workers.
The program outlined in House Bill 28 would pay off up to $24,000 in student debt for Alaskans who go out of state for college as an incentive to return home to work for the state or as a public school teacher.
Bill sponsor Rep. Andi Story, D-Juneau, said it’s an effort to address the state’s struggle to hire key employees and stem the tide of outmigration
“I want to incentivize and encourage skilled former Alaskans to come back home and work as teachers or state employees,” she…
Billionaire entrepreneur and Tesla CEO Elon Musk has voiced his concerns over the U.S. trade deficit and government spending, warning that America is at risk of bankruptcy if spending is not brought under control. Speaking in an interview with Fox News on February 19, 2025, Musk criticized wasteful government expenditures and urged taxpayers to recognize the financial mismanagement affecting the country’s economy. During the discussion, Musk emphasized that the United States is running a USD 2 trillion annual trade deficit, which he described as “insane.” He compared the country’s economic situation to that of an individual, stating that if overspending continues, financial collapse is inevitable. Former U.S. President Donald…
Tesla CEO and self-proclaimed “DOGE Head” Elon Musk sharply criticized the US government’s spending, warning that if the growing deficit is not addressed, “America will go bankrupt.” Speaking in an interview with Fox News on Tuesday, Musk said that the average American taxpayer “should be mad as hell” over wasteful expenditures.
“The overall goal is to try to get a trillion dollars out of the deficit,” Musk stated. “If the deficit is not brought under control, America will go bankrupt. This is a very important thing for people to understand. A country is no different from an individual. If an individual overspends, an individual can go bankrupt, and so can a country.”
He also criticised US foreign aid and government contracts, arguing…
