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.
When the coronavirus pandemic hit in Spring 2020, and the remainder of the 2019/20 football season was put on hold, there were widespread predictions of multiple football club insolvencies. In fact, since then, there have been very few (only Wigan Athletic and Bury have entered administration in that time), even though a number of clubs have been making, and continue to incur, significant losses.[1]
There are probably a number of reasons for that:
The support that has been given by the Government including the furlough scheme which has been used by a number of clubs, principally clubs outside the Premier League but also four clubs in the Premier League.
The Supreme Court on Friday upheld the constitutionality of the Centre’s November 15, 2019, notification that had allowed financial institutions to pursue proceedings against personal guarantors, commonly promoters, of stressed companies facing insolvency.
The apex court’s order will clear the decks for lenders to recover their remaining debt from personal guarantors following the conclusion of the Corporate Insolvency Resolution Process (CIRP).
An SC bench of Justices Ravindra Bhat and L Nageswara Rao delivered the ruling, which will enable banks to file personal bankruptcies against personal guarantors, even though the insolvency of companies is yet to be settled.
Supreme Court on Friday upheld provisions of the Insolvency and Bankruptcy Code (IBC) allowing lenders to pursue insolvency proceedings against promoter guarantors of companies facing Corporate Insolvency Resolution Process. Abench of Justices L Nageswara Rao and Ravindra Bhat delivered the judgement.The ruling would allow banks to file personal bankruptcies against guarantors, even when the insolvency of firms is yet to be resolved.
During the hearing, Justice Ravindra Bhat said that,”The approval of resolution plan relating to the corporate debtor does not operate so as to discharge the liabilities of the personal guarantor. Writ petitions dismissed without cost,” reported Bar & Bench.
In 2019, the Centre introduced a new provision in…
The former operator of swim school franchise Jump Loops, which operated a number of local outlets, has been fined $23m for falsely telling franchisees they would be up and running within 12 months.
However the fine is unlikely to be paid, with the business now in liquidation.
The federal Court has found Jump Loops promised 174 franchisees that they would be up and running within 12 months.
More than 150 of the franchisees never ended up with a swim school.
Less than $1m of the $24m Jump Loops received was ever refunded.
The action was brought by the Australian Competition and Consumer Commission, which said Jump Loops and related companies are now in liquidation.
Jump! Swim founder Ian Campbell must now to pay $500,000 in compensation to fra…
The former chief executive of failed van Eyk Research has been charged with four counts of dishonestly using his position within the firm for personal advantage.
Mark Thomas appeared in Downing Centre Local Court earlier this week, facing several allegations from ASIC.
Thomas was chief executive of van Eyk – and its largest shareholder – until its collapse in September 2014. van Eyk comprised four distinct businesses: investment research via the van Eyk Research business; asset consulting via the van Eyk Consulting business; financial advisory via the van Eyk Advice business; and funds management via the van Eyk Blueprint Series business.
The allegations made by ASIC relate to his conduct as an officer of the company over an almost thr…
The sources said NBCC’s bid was found to be non-compliant with certain provisions of the insolvency law.
On Wednesday, construction firm NBCC and Suraksha group submitted their final resolution plans to acquire Jaypee Infratech Ltd (JIL) in the fourth round of corporate insolvency resolution process.
The sources said that a virtual meeting of the Committee of Creditors (CoC) was held on Thursday to discuss the bids.
During the meeting, it was decided to put on vote the Suraksha group’s resolution plan next week, they added.
Voting is likely to start from Monday and end on Thursday.
The committee decided not to put NBCC’s bid on voting as it found the offer of the public sector entity non-compliant with provisions of the insolvency l…
As the title of the bill suggests, it seeks to amend the applicability of the directors disqualification regime to directors of dissolved companies. A summary of the current regime is summarised inthisnote on directors duties in the context of companies that are (or may become) insolvent.
Currently, in order for the Insolvency Service to take disqualification action against directors of disqualified companies, they first need to make an application to Court to have the company restored. This time-consuming exercise delays the investigatory action, and is costly, with the …
Borrowers falling into home mortgage arrears due to an unforeseeable loss of income will gain court protection under new legislation which has cleared the Oireachtas.
The Personal Insolvency (Amendment) Bill 2020, which will now be signed into law, gives insolvent homeowners the right to seek review by a court if their mortgage lender or other creditors refuse a reasonable proposal for a personal insolvency arrangement.
This is already an option under the Personal Insolvency (Amendment) Act 2015, but only for home mortgage arrears dating from before 1 January 2015.
James Browne, minister of state for law reform, youth justice and immigration, said: So a person at risk of losing their home, whose financial diffi…
Even though the central bank had permitted lenders to recast loans for borrowers earlier this month, the facility was limited to loans of up to Rs 25 crore
Banks have told the Reserve Bank of India (RBI) that the protracted curbs because of the second wave of the COVID-19 pandemic have resulted in significant stress on businesses and that such companies may need a restructuring of loans.
Even though the central bank had permitted lenders to recast loans for borrowers earlier this month, the facility was limited to loans of up to Rs 25 crore.
Since the measures were announced, the COVID-19 cases surged across the country, leading to several states imposing some form of lockdown.
Thai Airways International managed to get its creditors approval on May 19 for a proposed restructuring plan that would help the airline refinance its debt in an effort to stay afloat and remain financially viable long-term, Nikkei reported.
In order for the seal of approval to be given, the restructuring plan needed a nod from creditors who together hold over 50% of the companys debt. Of 38 creditors, 28 voted for the plan, though the 28 represented currently hold approximately 91.56% of Thai Airways total debt, meaning the plan passed with a significant margin.
Thai Airways International will continue to update on the progress of [its] busi…
MINNEOLA, Florida British actor Idris Elba was one of the celebrities who tested positive for COVID-19 back in March of 2020. His wife, Sabrina Dhowre Elba, also tested positive.Inan interviewwithRadio Times, Elba confirmed that he remained asymptomatic and didnt get the major symptoms everyone else got. However, he did discuss the mental health issues that went along with contracting the disease. Recently, the actor has been advocating that wealthy nations relieve any debts held by low and middle-income nations.
Idris Elbas Past Works
For as long as hes been in the spotlight, Idris Elba has been involved in a number of charitable works and funds. Elba supported Cancer Research U.K. and joined the fight against global AIDS and extreme …
The former operator of swim school franchise Jump Loops, which operated a number of local outlets, has been fined $23m for falsely telling franchisees they would be up and running within 12 months.
Borrowers falling into home mortgage arrears due to an unforeseeable loss of income will gain court protection under new legislation which has cleared the Oireachtas.