Since November 2023 corporate insolvency rates have shown positive signs that the rate of insolvencies since the pandemic may be tailing off and starting to reduce. (more…)

In the recent decision of Griffon Partners Operation Corp (Re), 2024 ABKB 277 [Griffon] the Court of King’s Bench of Alberta (the “Court”) considered the applicability of the doctrine of marshalling. The case involved a debtor indebted to both senior and subordinate creditors, with an affiliated entity granting a guarantee and share security solely to the Senior Creditors (defined below). The subordinate creditor, Tamarack Valley Energy Ltd. (“Tamarack”), sought to use marshalling to compel the Senior Creditors to exhaust their recourse under such affiliate guarantee and share security before realizing on the proceeds of their shared security. This order of realization would result in sufficient funds to…

A report by Economic Confidential, a subsidiary of PR Nigeria, has declared seven states, including Lagos, Ogun, Rivers, Kaduna, Kwara, Oyo and Edo as the most viable states in Nigeria for 2022.

The Assistant Editor of Economic Confidential, Zekeri Idakwo, disclosed this at a press briefing and presentation of the 2022 Annual States Viability Index Report in Abuja on Monday.

He said the report was compiled from figures released by the Nigerian Bureau of Statistics, and the Federal Account Allocation Committee.

Idakwo said,  “The IGR of the 36 states of the federation totalled N1.8trn in 2022, which was above that of 2021, which was N1.76trn.

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FTI Group, Europe’s third-largest travel provider, declared bankruptcy today following unsuccessful negotiations with the federal government, impacting 11,000 employees and tens of thousands of travelers currently on holiday or with future bookings.

Employees were informed of the bankruptcy during a morning video conference, though booking systems had already failed, ostensibly due to technical issues. The website of Labranda Hotels, owned by FTI, was also taken offline by morning.

FTI management had been in talks over the weekend with the economy and finance ministries, seeking a bailout to bridge a funding gap of several million euros to sustain operations through the summer. However, the federal government rejected the…

ASX-listed Nuheara Limited, which specialises in a wireless earbud that allows customers to augment their hearing, announced its move into voluntary administration late on Wednesday afternoon, appointing KPMG administrators to take control of the firm.

“The decision was taken by the board to best enable the company to conclude its ongoing strategic review, given the impending maturing of its $2.5m convertible note,” the company stated.

“This convertible note is held by Realtek Semiconducter Corporation and has a maturity date of September 7, 2024.

“The company is disappointed that it has been unable to reach a satisfactory…

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Valhalla Brewing and parent company Lotus Beer Co are set to be liquidated following a second meeting of creditors yesterday. 

In mid-July, the Geelong-based beer business entered voluntary administration and its subsequent collapse puts a spotlight on a number of issues within the craft beer industry, including equity crowdfunding, beer distribution, and the tight cashflow conditions within which breweries are operating. It also leaves Lotus’ creditors, many of whom are small, independent breweries, tens of thousands out of pocket.

The decision to wind up the business was recommended by the administrators, Worrells. They said in a report to creditors that they had not received a Deed of Company Arrangement (DOCA) from founder and…

Before the National Company Law Tribunal (NCLT) nod, the company’s lenders approved the plan with 99.51% voting in favour of Mundhra’s resolution plan. The plan involves a proposal to pay Rs 235.28 crore against the total admitted liabilities of Rs 2,108.49 crore.

The Kolkata-based infrastructure developer is a medium enterprise under the Micro, Small, and Medium Enterprises Development Act, 2006. Under Section 240A of the Insolvency & Bankruptcy Code (IBC), the promoters of a company registered under the MSME Act can participate in the bidding process to acquire the company through the bankruptcy process….

Byju Raveendran, Founder of the cash-strapped edtech firm BYJU’S, in an email, told employees that their July salaries would be paid once he regains control of the company amid growing concerns of insolvency.

“Your salary for July 2024 has not been credited yet…The apex court has issued a temporary stay on the NCLAT’s decision, which means the control of the company’s accounts has not yet been restored to us,” Raveendran said in the email as seen by YourStory.

“I guarantee this: When we regain control, your salaries will be paid promptly, even if that means raising more personal debt,” he added.

The financially struggling company has repeatedly delayed employee salaries in recent months. While it claims to have paid all…