Insolvency Guardian Media Centre
There can be many twists and turns over the life of a business, but one of the more serious (and usually final) turns is when it declares insolvency.
A recent spate of high profile collapses, most notably music retailer HMV, cake chain Patisserie Valerie, and department store House of Fraser, have all brought various insolvency methods to the fore.
While the word insolvent usually conjures up images of a business going bust and closing down, the reality is less clear.
Insolvency essentially means a company either cannot pay its bills when they are due, or its liabilities outnumber assets on its balance sheet.
A firm can still keep trading while in insolvency, although it often requires either agreement…
Read the full article at: https://www.proactiveinvestors.co.uk/companies/news/214896/when-business-goes-bad-what-are-a-companys-options-when-it-becomes-insolvent-214896.html
Lavan has boosted it ranks with the appointment of two new partners in Perth.
The firm has appointed Krista Bates as a corporate partner and Lawrence Lee as a restructuring and insolvency partner.
Bates is an expert adviser on M&A, disposals, joint ventures, private-equity transactions, schemes of arrangements, corporate governance issues, commercial contracts, and general corporate advice. She has an in-depth understanding of the nuances of investing in emerging markets, a skill set she developed in her more than 10 years living in Africa and working throughout sub-Saharan Africa.
She was most recently a senior consultant at Clifford Chance. She was also director and general counsel of low-cost airli…
Read the full article at: https://m.australasianlawyer.com.au/news/lavan-brings-in-top-duo-in-perth-260570.aspx
With reference to the subject cited above, I would like to inform you that the following matters are the outcome of the 4th Committee of Creditors Meeting of M/s. Southern Online Bio Technologies Limited held on 19th February, 2019.
1. Discussed on the 3rd CoC meeting minutes and approved by the members of the CoC
2. ……
3. ……..
4. ………..
5. RP has brought to the notice of the members of CoC about the appointment of Arbitrator and quotation received from one of the advocates who is involving arbitration proceedings and informed about the Visista Insurance agency status and also one of the members of the CoC has suggested another insurance broker details to get the quotations and further details from them.
This is for your informa…
Read the full article at: https://www.thehindubusinessline.com/companies/announcements/others/southern-online-bio-technologies-ltd-corporate-insolvency-resolution-process-cirp-outcome-of-meeting-of-committee-of-creditors/article26313221.ece
The end is officially near for Payless ShoeSource.
Payless late on Monday filed for voluntary Chapter 11 bankruptcy protection. In the filing, the company said that it has approximately $470 million in outstanding debt it cant service. The company has already shut down online sales and plans to close its 2,500 North American stores beginning in March. The company will begin liquidation sales as soon as Sunday and plans to have all of its stores shuttered by the end of May. Payless will only honor gift cards until March 11.
Payless, which was founded in 1956 and grew to become one of the largest shoe retailers in the U.S., filed for bankruptcy protection in 2017. At the time, Pay…
Read the full article at: http://fortune.com/2019/02/19/payless-shoesource-bankruptcy/
OLDWICK, N.J.–(BUSINESS WIRE)–AM Best today announced that Roger Sellek will step down as CEO
of AM Bests EMEA and AP regions effective 31 March 2019. Dr. Sellek
joined AM Best in 2007. During his tenure at AM Best Dr. Sellek
successfully led the expansion of AM Bests global business including
the establishment of offices in Dubai, Singapore and most recently
Amsterdam, with AM Best now providing rating services in more than 90
countries from its key regional hub offices.
As part of its strategic review and succession planning process, AM Best
has taken the opportunity to streamline the management of its business.
The new structure will enable the company …
Read the full article at: https://www.businesswire.com/news/home/20190219005262/en/Announces-Senior-Management-Organizational-Restructuring
The loss-making engineering and construction services contractor continues its rebuilding process to return DSI to profitability
The company appointed Tawfiq Abu Soud, a former managing director of its mechanical, electrical, and plumbing (MEP), and water and power businesses, as its newest CEO last month, just over a month after his predecessor, Yousef Al Mulla resigned.
By Neil Halligan
Read the full article at: https://www.arabianbusiness.com/construction/413558-drake-scull-appoints-three-new-execs-to-oversee-ongoing-restructuring
BANKRUPTCY & INSOLVENCY
A resolution plan passed under the Insolvency and Bankruptcy Code, 2016 (IBC), binds all stakeholders of the company including any dissenting creditors. Providing a 66% voting threshold by value for approval is a useful tool to ensure that a revival plan is not held to ransom by minority financial creditors.
Before 5 October 2018, regulation 38(1) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, required that a resolution plan provide for payment of liquidation value (the estimated realizable value of the assets of the corporate debtor if the corporate debtor were to be liquidated on the insolvency commencement da…
Read the full article at: https://www.vantageasia.com/ibc-ensuring-dissenting-creditors-get-fair-deal/
This is crucial since a large sum of lenders capital is tied in such assets, Bansal added.
Lack Of Clarity In Relinquishing Or Realising Security Interest
The second challenge relates to secured lenders in whose favour assets of the company have been charged as a security for the loan extended. The insolvency code gives secured lenders two options regarding their secured interest:
- Relinquish the interest so that the asset forms part of the liquidation estate which the liquidator can then sell, or
- Retain the security interest and realise it by selling the asset itself.
A lack of procedural clarity is making both these options challenging.
Bansal pointed to a recent case where the liquidator took a view that once a creditor has filed claim befor…
Read the full article at: https://www.bloombergquint.com/bq-blue-exclusive/is-the-liquidation-process-under-the-ibc-yet-another-pandoras-box
The firm, formerly known as Bosasa, announced on Monday it had opted for voluntary liquidation after banks announced they would close the companys accounts, citing reputational risk.
PRETORIA – The liquidation of embattled firm African Global Operations has been broadly welcomed despite the potential loss of more than 4,500 jobs.
The firm, formerly known as Bosasa, announced on Monday that it had opted for voluntary liquidation after banks announced they would close the companys accounts, citing reputational risk.
The company has been at the centre of explosive state capture allegations surroundin…
Read the full article at: https://ewn.co.za/2019/02/19/outa-da-welcomes-liquidation-of-african-global-operations
Dear Sir / Madam,
With reference to our earlier disclosure made on 15th February 2019, we would like to inform you that meeting of the 12th Committee of Creditors of Sterling Biotech Limited scheduled to be held on Wednesday, 20th February 2019 at 02.00 P.M. IST at Mayfair Banquets, 254-C Dr. Annie Besant Road, Shivaji Nagar, Worli, Mumbai-400 030, Maharashtra, India has been postponed to Monday, 25th February, 2019, at 02:00 P.M. IST at IMC Bldg., IMC Marg, Churchgate, Mumbai – 400 020, Maharashtra, India.
You are requested to take the same on record.
Source : BSE – www.bseindia.com
Read the full article at: https://www.thehindubusinessline.com/companies/announcements/others/sterling-biotech-ltd-corporate-insolvency-resolution-process-cirp-intimation-of-meeting-of-committee-of-creditors/article26310311.ece
A multimillion-euro facilities management company that has been implicated in a massive public sector corruption scandal in South Africa has gone into voluntary liquidation because local banks have closed all its accounts.
On Monday, African Global Operations, which traded under the name Bosasa, said in a statement released by its chairman Joe Gumede that extensive reputational damage had prompted two local banks to act against the group.
While the company had tried to open new bank accounts in South Africa and abroad,…
Read the full article at: https://www.irishtimes.com/business/energy-and-resources/south-african-company-accused-of-corruption-placed-into-liquidation-1.3798307
Its been just over a year since iconic Australian label Lover, known for its halter-neck-style lace dresses and delicate bridal gowns, entered voluntary administration.
The Australian fashion industry shook its collective head at the news of this downfall: another beloved local label had fallen victim to the difficult retail climate, and the industry prepared to mourn its loss.
But the period of voluntary administration might turn out to be a temporary setback. Lovers physical and digital doors have remained open since administrators were appointed in November 2018, and while the label has undergone a financial restructure, its been like a duck on water moving frantically below the surface, but cruising above.
Australian apparel b…
Read the full article at: https://www.broadsheet.com.au/national/fashion/article/another-romance-lover