Israel. Zellermayer, Pelossof & Co

Size: px
Start display at page:

Download "Israel. Zellermayer, Pelossof & Co"

Transcription

1 Israel Ofer Shapira, Partner The Israeli legislation on insolvent companies is principally set out in: Zellermayer, Pelossof & Co the Companies Ordinance (New Version) 1983; the Bankruptcy Ordinance 1980; the Companies Law 1999; and Tzur Fenigstein certain regulations introduced on the basis of these laws. PricewaterhouseCoopers Official English translations of this legislation are available. However, the vast majority of insolvency-related matters have been established by case law and court precedent. Israeli law recognises three main ways of dealing with insolvent companies: a voluntary arrangement between the debtor and its creditors; liquidation; and receivership. According to established practice, a voluntary arrangement is designed to rescue the debtor company, while liquidation and receivership are intended to secure the best price from realisation of company assets for the repayment of creditors. The law stipulates that in order to facilitate the conclusion of an arrangement between the debtor and its creditors, the court may stay proceedings against the debtor for a certain period of time and appoint a trustee to supervise the debtor' business. The trustee will act on the instruction of the court. The trustee is usually appointed on the nomination of the debtor. This often serves as a defence for the debtor against its creditors while pursuing a voluntary arrangement. Liquidation and receivership are usually initiated by the creditors. In some cases, however, the boundaries blur between the three insolvency proceedings. The Israeli courts tend to view optimal debt repayment as the main objective of insolvency proceedings. Accordingly, the courts treat all three approaches as essentially designed to protect the interests of creditors, giving them priority over the interests of the debtor or any third parties such as employees, suppliers or customers. A stay of proceedings and a scheme of arrangement between an insolvent company and its creditors will therefore be allowed only if this course of action can reasonably be expected to favour the creditors. On the other hand, if The European Restructuring and Insolvency Guide 2005/2006 1

2 Israel Zellermayer, Pelossof & Co and PricewaterhouseCoopers the creditors would collect more from the company as a going concern, the courts will not hesitate to order that the company be operated as a going concern within the framework of liquidation or receivership proceedings. All three of the insolvency procedures constitute collective proceedings that are conducted under court supervision and guidance, with particular attention to the priorities established by law, including the principle of equality between creditors of any given class. The lack of a comprehensive regulatory framework for the recovery of insolvent companies constitutes a major disadvantage, resulting in uncertainty for the various parties involved. In some cases, however, the absence of legislation turns out to be an advantage, as it allows the courts to apply their own judgement and structure arrangements tailored to the specific circumstances and to market conditions. 1 The legal framework and the effectiveness of court processes/ legal remedies 1.1 Describe the nature and the effectiveness of the following: (a) Debt recovery remedies where the creditor has no security An unsecured creditor of an insolvent company has various legal options available in order to recover a debt, including the following: Where available, a creditor can implement contractual remedies such as provisions on residual ownership, set-off and so on. These are simple, cheap and highly effective measures for recovering a debt. A creditor holding a bill (eg, a cheque) can collect the debt directly through the Execution Office by way of a procedure between the creditor and the debtor. The main advantage of this method is that the creditor acts independently of the other creditors, which may not yet have commenced proceedings against the debtor. However, disadvantages arise where a significant number of creditors are seeking to recover from the debtor through the Executive Office. In such case liquidation proceedings are preferable for both the debtor and its creditors - not least because the district courts, which have jurisdiction over liquidations, have extensive experience in such matters and better legal tools are available for applying collective proceedings against the debtor. A creditor can file an ordinary suit with the competent court, whose ruling will be enforced by the Execution Office. In the event of an undisputed debt, a creditor can file a petition for liquidation of the debtor. This launches a collective procedure that applies to all creditors, which will be bound by the procedure and repaid according to priorities established by law. The main disadvantage of this approach is that an insolvent company will not be in a position to meet all of its obligations towards its unsecured creditors; it is thus clear that the petitioner will recover only part of the debt. (b) The enforcement of security A secured creditor seeking to recover a debt from an insolvent company may apply all of the above measures available to unsecured creditors. It may also realise the security in one of the following ways: If the security is a pledge over a right, the creditor can realise the right in the same manner as the debtor could. The creditor can do so even if the period for realisation of the right precedes the maturity of the secured debt, unless the pledge agreement provides otherwise. The creditor can realise the security through the Execution Office in a proceeding between the creditor and the debtor. This is an effective, uncomplicated approach that enables the official in charge to concentrate on the realisation of the 2 The European Restructuring and Insolvency Guide 2005/2006

3 Zellermayer, Pelossof & Co and PricewaterhouseCoopers Israel security without being distracted by matters related to the operation of the debtor. The creditor can realise the security through the court by filing a petition for realisation of the security (an option available under law, but rarely exercised). If the security is a floating charge, it can be realised by filing a petition with the district court with jurisdiction over the debtor. In such case the court will appoint a receiver for the assets that are subject to the floating charge, who will handle the realisation of such assets. A receiver that is appointed for all of the debtor s assets will usually replace the debtor s management and most powers of the company organs will be transferred to the receiver. In the event of a charge on a movable, tangible asset or securities deposited with a creditor that is a bank, realisation can be carried out directly by the bank (this approach, which imposes special responsibility on the creditor bank, is rarely used). (c) Corporate bankruptcy/ liquidation processes An unsecured creditor can initiate liquidation proceedings against a debtor in order to realise its assets, recovering jointly with other creditors of the same class. The law allows any creditor to approach the court with a petition for a stay of proceedings as a preliminary measure, prior to the conclusion of an arrangement between the debtor and its creditors. In practice, however, creditors do not pursue this option without the debtor s cooperation. Like an unsecured creditor, a secured creditor can initiate liquidation proceedings against the debtor; a secured creditor with a floating charge over the entire assets and property of the debtor can also initiate receivership proceedings against the debtor. This procedure involves the realisation of all assets included under the floating charge and distribution of the proceeds among the creditors according to the priorities established by law. Receivership is considered a friendly and efficient approach for secured creditors. Unsurprisingly, it is the preferred approach for protecting the rights of creditor banks with floating charges against outstanding credit. (d) Formal corporate rescue processes Section 350 of the Companies Act provides that where an arrangement is proposed between the debtor and its creditors or shareholders, or between the debtor and a given class of creditors or shareholders, the court may order that a meeting be held with such creditors or shareholders in a manner determined by the court. The proposal must be approved by a majority of participants at the meeting with voting rights, representing at least 75 per cent of the value represented at the meeting. If the proposal is adopted, the draft arrangement will be submitted to the court for approval. Thereafter, the arrangement becomes binding on the debtor and all creditors or shareholders or any class thereof, as the case may be. The draft arrangement is usually companied by a petition to the court for a stay of proceedings (if this has not already been granted). If the court is satisfied that a stay of proceedings would help facilitate the preparation or approval of a recovery plan, it may issue an order staying all proceedings against the debtor for a period of up to nine months. (In practice, however, the courts have ordered stays of over nine months). Israeli case law shows that under certain circumstances, the court may order a stay even in the absence of a specific draft arrangement, in order to allow for the formulation of such an arrangement. Voluntary arrangement and stay of proceedings constitute an efficient means of protecting the debtor and continuing its business. In practice, it is the debtor itself, rather than its creditors, that initiates such proceedings. In the past, use was made of so-called operational liquidation a creation of case law whereby the legal instruments intended for liquidation were utilised to put the debtor on the road to recovery, under court supervision. The European Restructuring and Insolvency Guide 2005/2006 3

4 Israel Zellermayer, Pelossof & Co and PricewaterhouseCoopers (e) Informal corporate rescue processes The legal provisions on insolvent companies do not prevent a debtor from settling some of its debts through bilateral agreements with certain creditors, provided this does not give those creditors preferential treatment. Such agreements are not subject to court approval; they involve no collective obligations and cannot prevent a creditor that has been left out of the agreement from instituting liquidation proceedings. An out-of-court agreement is usually suitable for debtors with only a limited number of creditors, where a settlement would permit the continued existence of the company as a going concern without any need to resolve matters with other creditors. 1.2 What are the formal processes to effect a liquidation of the company s assets? the debtor s business. A temporary liquidator is only rarely allowed to dispose of company assets, unless this is necessitated by the nature of the assets. Once the liquidation petition is filed, the court will set a date for hearing the case, following which the court will decide whether to issue a liquidation order. At least 14 days prior to the scheduled hearing, the petitioner must publish notice of the hearing in a daily newspaper and in the Official Gazette. Anyone that notifies the petitioner at least seven days in advance of the hearing of its intention to participate may join the hearing. A party that intends to oppose the liquidation must file an opposition, accompanied by an affidavit, at least seven days in advance of the hearing. The court has discretion to decide whether to accept the liquidation petition. In reaching its decision, it will consider, among other things, whether: A company can be liquidated in one of the following ways: liquidation by the court; voluntary liquidation; or liquidation under court supervision. the company disputes in good faith the existence of the debt; the creditor has an interest in the liquidation; other creditors oppose the liquidation; and the company has already started voluntary winding-up proceedings. A creditor seeking to recover its claim through liquidation will proceed according to the legal provisions on liquidation by the court. This is the method most commonly used to liquidate insolvent companies in Israel. It begins with the filing of a liquidation petition with the district court with jurisdiction over the debtor s registered office or main place of business. The petition may be filed by the debtor, a shareholder or a creditor. In some cases notably, where there is risk of the illegal disposal of company assets before the liquidation order is issued - the petitioner will also request the appointment of a temporary liquidator, in order to preserve the status quo and prevent damage to the petitioner pending the issue of the liquidation order. The duties of the temporary liquidator may include the continued operation of The court is also entitled to take account of public considerations such as the number of company employees. 1.3 What is the effect on debt collection and the enforcement of security of: (a) An adjudication of corporate bankruptcy/liquidation? A liquidation order triggers a collective process for the repayment of debts due to all creditors by way of liquidation. The law stipulates that the issue of a liquidation order or the appointment of a temporary liquidator precludes any further proceedings against the debtor, except with the permission of, and on instruction by, the court. As a rule, the liquidator will dispose of all of the debtor s assets according to court 4 The European Restructuring and Insolvency Guide 2005/2006

5 Zellermayer, Pelossof & Co and PricewaterhouseCoopers Israel instructions and will distribute the proceeds among the creditors according to the priorities established by law. An unsecured creditor that has instituted legal proceedings against the debtor - and even a creditor that has begun execution proceedings against the debtor - is prevented from continuing them. These proceedings will be stayed and the creditor must sue within the framework of liquidation proceedings, except in extraordinary cases established in case law. As a rule, the court will allow a secured creditor to institute or continue proceedings for the realisation of security, unless the creditor has been guaranteed adequate protection of its rights. The liquidator may take possession of encumbered assets against payment of their value to the secured creditor. Identical rules on the priority of claims apply in liquidation proceedings as apply in other insolvency proceedings, such as receivership for the realisation of a floating charge on all of the debtor s assets. However, Israeli law does not provide for a stay of proceedings in the event of the issue of a receivership order; therefore, a receivership order causes no automatic stay or cessation of proceedings against the debtor. (b) The commencement of a formal corporate rescue process? A proposal for an arrangement between the debtor and its creditors does not lead to an automatic stay of proceedings, unless a petition is submitted for a stay of proceedings in order to facilitate recovery. Once the court has ordered a stay of proceedings against the debtor, proceedings against the debtor may not be opened or continued, except with court approval and subject to court instruction. Even after a stay of proceedings has been granted, the court may authorise a secured creditor to realise its security - including the realisation of a floating charge on company assets - where the court is satisfied that the creditor has not been guaranteed adequate protection from the encumbered assets or that nothing in the exercise of the security will impair the prospects of corporate recovery. (c) The initiation of an informal corporate rescue process? A specific arrangement between a debtor and certain creditor has no binding effect on third parties that are not party to the agreement; nor does such arrangement affect the rights of other creditors to recover from the debtor in the various ways provided for by law. 1.4 Are insolvency procedures started in another jurisdiction in respect of a corporation incorporated in your jurisdiction recognised? According to Israeli law, the Israeli courts have jurisdiction over cases involving the insolvency of an Israeli company operating and located in the state of Israel. The recognition of insolvency proceedings instituted in another country - including proceedings under Chapter 11 of the US Bankruptcy Code - is subject to the provisions of private international law as applied in Israel, and the Israeli courts can recognise foreign proceedings concerning a company incorporated in Israel with regard to its assets located within that foreign jurisdiction, or in cases where the rulings of the foreign court do not contradict Israeli insolvency law. The Israeli courts consider themselves bound to protect the domestic provisions on priority and the interests of Israeli creditors - even with regard to companies incorporated outside Israel, and especially where the foreign company has assets in Israel and/or is also registered in Israel. In such cases the Israeli court may recognise a secondary liquidation proceeding applicable to assets located in Israel and with regard to Israeli creditors of the foreign company, despite any stay of proceedings ordered by the foreign court. The European Restructuring and Insolvency Guide 2005/2006 5

6 Israel Zellermayer, Pelossof & Co and PricewaterhouseCoopers 1.5 In what circumstances would the directors or officers of a company in financial difficulties face potential personal liability for continuing to trade? The rule on the separate legal status of a company with regard to its shareholders and officers also applies where the company enters into liquidation. The courts usually avoid piercing the corporate veil and/or imposing personal liability on officers in connection with the company s business: under the business judgement rule, a court will not retroactively judge the correctness of decisions made by company officers as long as they applied reasonable judgement at the time. However, in case of insolvency, a number of causes of action are available where company officers are found to have failed to exercise their duties properly. According to Section 373 of the Companies Ordinance, if it becomes evident during liquidation that the company s business was managed in a manner intended to deceive its own or other creditors, or for any fraudulent purpose, the court may, at the request of the official receiver, the liquidator, a creditor or a shareholder, order that any director who knowingly participated in the management of the business bear unlimited personal liability for all or part of the company s debts, as instructed by the court. The court may also impose criminal sanctions on that director, and even disqualify him from serving as company director or being directly or indirectly involved in the management of a company without court permission. For such purposes, the term director also covers a person who has not served as a formal director, if in practice the directors acted on that person s instructions or guidelines. According to Section 374 of the Companies Ordinance, if it becomes clear in the course of liquidation that an officer made improper use of money or assets of the company, or committed an improper or illegal act in a negotiation related to the company, the court may, among other things, investigate the behaviour of that officer and order him to return the money or asset, in full or in part, or to compensate the company for his actions. Sections 375 to 378 of the Companies Ordinance allow for the imposition of criminal liability for certain acts committed by a company officer, such as: forging documents for fraudulent purposes; inducing third parties to extend credit to the company on fraudulent grounds or through any other deception; gifting, transferring or charging a company asset in order to deceive creditors; concealing company assets before or after a court ruling ordering payment of a debt; and obtaining an asset on credit by falsely claiming that business is continuing as usual. These specific causes of action do not prejudice the liquidator s power to sue an officer on the company s behalf on the basis of general causes of action admissible under law, such as breach of fiduciary duties and/or breach of the duty of care owed to the company. 2 What are the advantages and disadvantages of triggering a formal procedure? A creditor that institutes liquidation proceedings is not entitled to preferential treatment over other creditors in the proceedings, because: an established order of priority applies for distribution of the proceeds from the sale of the debtor s assets; and a fundamental principle governing the proceedings is equality between creditors of the same class. From the perspective of unsecured creditors, one advantage of liquidation is the possibility to impose personal liability on company officers in certain circumstances established by law. As unsecured creditors are last on the list of dividend 6 The European Restructuring and Insolvency Guide 2005/2006

7 Zellermayer, Pelossof & Co and PricewaterhouseCoopers Israel recipients upon liquidation, they usually suffer as a result. From the perspective of corporate management, liquidation is a means of terminating the company s business in an orderly manner, while protecting the directors from liability for fraudulent management. However, if the management is convinced that it can keep the business going in spite of the company s financial difficulties, it will prefer to approach the court with a petition for a stay of proceedings and seek to conclude an arrangement with the creditors. If the court accepts the petition for a stay of proceedings or for the appointment of a trustee to facilitate the conclusion of an arrangement, it will also tend to accept the company s nomination of trustee. A secured creditor that institutes proceedings for the enforcement of a debenture through the appointment of a receiver may gain a technical advantage by triggering the formal receivership procedure, in that the receiver is appointed on its nomination. In the case of enforcement of a floating charge on all of the company s assets, the receivership order places all of the company s assets under the control of the receiver a procedure that usually remains in effect even if the company has entered into liquidation proceedings. In case of liquidation and receivership, the incumbent management loses control of the debtor s assets and business. These powers are assumed by an officer of the court, who will conduct the business in favour of the creditors according to court instructions, preventing any concealment of assets. According to Israeli law, where a formal liquidation order is issued, the debtor s employees can approach the National Insurance Institution and obtain amounts due to them as a result of termination of their employment. However, this benefit is not available in case of an order for the stay of proceedings and/or receivership. This is why a considerable number of liquidation petitions are filed by employees. 3 What are the practical options for out-ofcourt restructuring? Israeli law contains no specific provisions on outof-court agreements. Where a debtor concludes an agreement with its creditors, this will be subject to the provisions of general law. An agreement reached outside the framework outlined in Section 350 of the Company Act is binding on the contracting parties in accordance with contract law, but has no binding effect on third parties not covered by the agreement. One main disadvantage of an out-of-court agreement is that its provisions cannot be enforced on an opposing minority. However, where there are few material creditors, an out-of-court agreement is a cheap and effective alternative that can also help to preserve the goodwill of the debtor because of the lack of publicity surrounding such agreements. 4 What is the effect on the management of a company of: (a) An adjudication of corporate bankruptcy/liquidation? Where a liquidation order is issued and a liquidator is appointed, the debtor s management loses its powers, including powers of agency. Before the order becomes absolute, the management still has the power to institute legal proceedings seeking cancellation of the liquidator s appointment (temporary or permanent, as the case may be), and to initiate proceedings on behalf of the company in order to appeal against the liquidation order. There is no legislation on the effect on management of a receivership order. However, the Israeli courts have ruled that in case of a receivership order over all of a company s assets as part of the realisation of a floating charge, the management s powers are suspended and transferred to the receiver, who exercises them under court supervision. The suspension of managers from office does not release them from duties such as the obligation to sign the financial statements until the The European Restructuring and Insolvency Guide 2005/2006 7

8 Israel Zellermayer, Pelossof & Co and PricewaterhouseCoopers receiver has been appointed, or fiduciary duties towards the company. Moreover, case law stipulates that upon his appointment, an operating receiver takes the place of all company organs. Upon the termination or expiry of his appointment, the powers of management revert to the company managers (unless a liquidator is appointed). (b) The commencement of a formal corporate rescue process? Arrangement proceedings pursuant to Section 350 of the Company Act do not automatically impair the powers or status of the debtor s management, and are thus regarded as friendly to the incumbent management. Israeli law contains no provisions on the powers of management in the course of arrangement proceedings: this is left to the discretion of the court. The appointment of a trustee restricts the powers of the current management as set forth in the relevant court order. In the past, recovery arrangements have also been concluded within the framework of temporary or permanent liquidation. Such cases are subject to the usual rules on temporary or permanent liquidation with regards to the powers and status of management. (c ) The initiation of an informal corporate rescue process? As Israeli law contains no provisions on out-ofcourt arrangements, these are subject to the general law. There are no direct legal provisions that alter the powers or status of managers in connection with an out-of-court arrangement. In any event, the creditors are entitled to seek changes to management as part of a scheme of arrangement. 5 Parties in interest/key players 5.1 Who is responsible for the case management control and administration of: (a) A corporate bankruptcy/ liquidation? In case of temporary liquidation (before a liquidation order is granted), it is the applicant (ie, a creditor, the shareholders or the debtor) that takes the decision to begin formal insolvency proceedings and selects the officer of the court. Once the liquidation order is granted, the official receiver is automatically appointed as temporary liquidator. The official receiver will usually request the appointment of a special manager who will work together with the official receiver and assist him with the liquidation proceedings. The special manager is generally the individual formerly appointed as the temporary liquidator. Once the liquidation order has been granted, the official receiver will convene meetings of the creditors and shareholders in order to nominate the (permanent) liquidator. The liquidator will then be appointed by the court, usually according to the decision of the majority of the creditors and on the recommendation of the official receiver. In receivership, it is a creditor that usually takes the decision to begin formal insolvency proceedings and selects the officer of the court, sometimes with the consent and cooperation of the debtor. In a voluntary arrangement between the debtor and its creditors, it is usually the debtor that takes the decision to begin formal insolvency proceedings and selects the officer of the court, generally with the prior consent of the secured creditors. Where the chances of a liquidation or receivership motion are good, the debt is undisputed and there is a risk of illegal disposal of company assets, the court will usually appoint a temporary liquidator/receiver. In all procedures, the appointee usually has executive control over the business, unless the court orders otherwise. 8 The European Restructuring and Insolvency Guide 2005/2006

9 Zellermayer, Pelossof & Co and PricewaterhouseCoopers Israel (b) A formal rescue? The debtor itself usually takes the decision to begin formal rescue proceedings according to Section 350 of the Companies Act and selects the officer of the court. However, the court has discretion to accept or reject the debtor s nomination. (c) An informal rescue? An out-of-court agreement is usually initiated by the debtor in order to settle some of its debts through bilateral agreements with certain creditors - provided this does not give those creditors preferential treatment. Such agreements are not subject to court approval. As part of an informal arrangement, secured creditors will often demand the appointment of an examiner (usually an accountant) to monitor the debtor s compliance with the terms of the agreement. 5.2 Who is responsible for preparing the restructuring plan in a formal or informal rescue? Responsibility for preparing a restructuring plan in a formal rescue rests with the appointed trustee, who will usually prepare the plan in cooperation with the debtor. In an out-of-court agreement, the debtor will prepare the restructuring plan. 5.3 Who are the key players? What are their roles and responsibilities? In general, only lawyers or accountants can be appointed as receivers or liquidators. However, the court may exceptionally appoint an individual with different skills where it considers this necessary and the official receiver recommends such an appointment. Any experienced person can be appointed as a special manager. The main responsibility of the officer of the court is to act in the best interests of all creditors and maximise the realisation of the debtor s assets. 6 What financial information is available to creditors? In general, each company in Israel must prepare annual financial statements and attach these to the company reports submitted to the tax authorities. The financial statements are prepared according to Israeli Generally Accepted Accounting Principles (GAAP), which are based on international GAAP. Publicly traded companies are also required to issue more comprehensive financial statements, still based on Israel GAAP but containing additional information. A new regulation in the pipeline will require such companies to provide enhanced reporting of their business prospects (similar to what is required in the United States). A couple of agencies also provide financial stability evaluation services, and there are two rating companies that work in affiliation with Standard & Poor s and Moody s. In addition, banks can - and in many cases do - require that the companies they lend to provide additional financial data, budgets and business plans. Secured creditors play a key role in most proceedings. Receivership is initiated by the secured creditors and their nomination of receiver is usually accepted. The secured creditors will also be heard before any substantial direction of the court during the receivership proceedings. Secured creditors and other major creditors will also have a significant role in voluntary arrangements and in liquidation proceedings. The European Restructuring and Insolvency Guide 2005/2006 9

10 Israel Zellermayer, Pelossof & Co and PricewaterhouseCoopers 7 Common questions 7.2 Ranking of creditors 7.1 Funding and the priority given to new money In what order are creditors paid in a corporate bankruptcy/liquidation? (a) If an insolvent corporation requires urgent working capital funding, what difficulties are likely to be encountered in the provision of such funding? (b) Are lenders providing new money, or debtor-in-possession financing, given any statutory priority? The law affords no automatic priority to anyone that provides working capital to an insolvent company. Moreover, according to law, anyone that provides unsecured credit to a company cannot recover from the company ahead of other creditors of the same rank, since this may be construed as preferential treatment. The main ways of granting priority to a person that provides credit are as follows: If the funding is to be used to acquire a certain asset or to finance a certain project, the asset or project can be encumbered up to its full value or up to the amount of credit granted for the acquisition, whichever is smaller. In the course of insolvency proceedings liquidation, receivership or scheme of arrangement the insolvency practitioner (liquidator, receiver or trustee) can petition the court for leave to obtain new credit and to categorise the new credit as a liquidation or receivership expense, thus establishing priority for its repayment. According to case law, establishing priority over the rights of a secured creditor is subject to the express consent of that creditor, unless the priority stems from a legally acceptable arrangement. The claims of a company in liquidation or receivership will be satisfied as follows: certain taxes relating to land disposed of within the framework of the liquidation or receivership, under Section 11A(1) of the Tax Ordinance (Collection); claims of a contractor holding a lien on an asset where the contractor has carried out repair or renovation works, up to the amount of the payment for the last repair or renovation; claims of secured creditors holding a fixed charge, up to the amount of the security (payment to such creditors will be preceded by payment of the expenses incurred in disposing of the secured asset or the secured creditor s share in the expenses incurred in its favour); expenses of the liquidation or receivership (including the liquidator or receiver s fee); claims of priority creditors (wages up to a certain limit; income tax deductions for wages; municipal taxes due in the year preceding the liquidation; certain state taxes; rent for up to one year before the liquidation date); claims of creditors holding a floating charge, up to the value of the assets included in the floating charge; and claims of unsecured creditors. Under the equality principle, creditors in a given class will be repaid pari passu in proportion to the value of their respective claims. 10 The European Restructuring and Insolvency Guide 2005/2006

11 Zellermayer, Pelossof & Co and PricewaterhouseCoopers Israel 7.3 Avoidance of antecedent transactions Are there any legal provisions that might operate to invalidate the creation of security, the disposal of an asset or the payment of a creditor by a company in financial difficulties? Prior to liquidation: Israeli company law provides that certain transactions concluded prior to the commencement of liquidation may be cancelled where the following conditions are satisfied: The company has entered into liquidation; The relevant transaction was effected in the three months preceding the date of filing for liquidation; At the time, the company was not in a position to repay its debts; and The transaction was effected in order to grant priority to a given creditor or was entered into through illegal constraint. The establishment of a charge in favour of a creditor close to the liquidation date, outside the ordinary course of business and without any countervalue, will likewise be regarded as illegal preference. According to Section 359 of the Companies Ordinance, a floating charge made in the six months prior to the date of filing for liquidation will be valid only with regard to the sum paid in cash to the company at the time of creation of the charge or thereafter (plus interest), unless it can be proved that the company was solvent immediately after the creation of the charge. The law stipulates further that general assignments of rights established by the company prior to the commencement of liquidation proceedings will be cancelled, subject to certain conditions. Under certain conditions, the court can further direct and allow the liquidator or receiver to dispose of an aggravating asset or transaction if it is disadvantageous to the company and there is no other way of minimising the financial damage to the company and its creditors. During liquidation: According to Section 268 of the Companies Ordinance, any transaction effected using company assets after a liquidation petition has been filed (if a liquidation order is eventually issued) is void, unless the court directs otherwise. 7.4 Cram-downs What is the position of both unsecured and secured creditors who vote against, do not agree with or do not consent to either a formal or informal rescue plan? As there are no legislative provisions on out-ofcourt agreements, these are subject to general law. As a rule, there is no way to compel a creditor to accept an out-of-court agreement. However, given the inferior status of unsecured creditors in liquidation proceedings, in certain circumstances they be persuaded to accept an out-of-court agreement rather than resort to liquidation. According to the law, the court will approve an arrangement between the debtor and its creditors if the arrangement is approved by each meeting of the creditors and shareholders, by a majority of participants representing 75 per cent of the value represented in the vote at each meeting. Section 350 of the Companies Act, which sets out the procedure for creditor arrangements, contains no cram-down provision. As a result, the court is left with broad discretion to decide whether to accept a proposed arrangement in spite of opposition or disagreement on the part of certain creditors. 7.5 Creditor protection What actions can creditors take if they are not satisfied with the conduct of either a formal rescue procedure or a corporate bankruptcy/liquidation? The most natural way for a creditor to voice its opinion on an arrangement is to express its view at a meeting of creditors of the same class and attempt to join forces with other creditors that share its The European Restructuring and Insolvency Guide 2005/

12 Israel Zellermayer, Pelossof & Co and PricewaterhouseCoopers view. An objecting creditor can also express its opposition to the arrangement in court as part of the proceedings conducted pursuant to Section 350 of the Companies Law. A creditor seeking to express dissatisfaction with the conduct of a liquidator, receiver or trustee may, under certain conditions, approach the competent court and request it to issue instructions to the insolvency practitioner. Under certain circumstances, creditors may also decide in the course of liquidation proceedings to set up an audit committee that will function alongside the liquidator and supervise his work, with reference to the powers and duties established by law for this committee. 12 The European Restructuring and Insolvency Guide 2005/2006

Restructuring and insolvency in Luxembourg PricewaterhouseCoopers Sàrl Noble & Scheidecker

Restructuring and insolvency in Luxembourg PricewaterhouseCoopers Sàrl Noble & Scheidecker Restructuring and insolvency in Luxembourg PricewaterhouseCoopers Sàrl Noble & Scheidecker This article first appeared in The European Restructuring and Insolvency Guide 2005/2006 published by Globe White

More information

Bermuda is a major offshore business jurisdiction with more than 13,500

Bermuda is a major offshore business jurisdiction with more than 13,500 Bermuda Kehinde AL George, partner Attride-Stirling & Woloniecki Peter CB Mitchell, senior partner PricewaterhouseCoopers Bermuda is a major offshore business jurisdiction with more than 13,500 registered

More information

The main source of law relating to corporate insolvency in Jamaica is Part

The main source of law relating to corporate insolvency in Jamaica is Part Jamaica Myers, Fletcher & Gordon and PricewaterhouseCoopers Jamaica Peter Goldson, partner Gina Phillipps-Black, partner Shuana-Kaye A Hanson, associate Myers, Fletcher & Gordon John Wesley Lee, partner

More information

Corporate restructuring guidelines Insolvency

Corporate restructuring guidelines Insolvency Corporate restructuring guidelines Insolvency Prepared by: 1 Whitney Moore Published by: Irish Business and Employers Confederation 84-86 Lower Baggot Street Dublin 2 Date of publication: April 2010 Author:

More information

An Overview of UK Insolvency Procedures and the Considerations for Banks with an Insolvent Customer

An Overview of UK Insolvency Procedures and the Considerations for Banks with an Insolvent Customer An Overview of UK Insolvency Procedures and the Considerations for Banks with an Insolvent Customer November 2011 1 An Overview of UK Insolvency Procedures and the Considerations for Banks with an Insolvent

More information

GUIDE TO INSOLVENCY IN THE CAYMAN ISLANDS

GUIDE TO INSOLVENCY IN THE CAYMAN ISLANDS GUIDE TO INSOLVENCY IN THE CAYMAN ISLANDS CONTENTS PREFACE 1 1. Introduction 2 2. When is a Company Insolvent under Cayman Islands Law? 2 3. Formal Insolvency Procedures 2 4. Creditors Rights 4 5. Voidable

More information

A Creditor s Guide to Voluntary Liquidation in Hong Kong

A Creditor s Guide to Voluntary Liquidation in Hong Kong A Creditor s Guide to Voluntary Liquidation in Hong Kong Creditors Voluntary Liquidation Creditors voluntary liquidation occurs when shareholders put a company into liquidation because it is insolvent,

More information

Insolvency & Debt Recovery Glossary of Terms

Insolvency & Debt Recovery Glossary of Terms Insolvency & Debt Recovery Glossary of Terms Administration An insolvency procedure in which an Administrator is appointed to attempt to rescue an insolvent company. It s designed to protect the company

More information

Glossary of terms. Bond Quasi fidelity insurance needed by a person who acts as an insolvency practitioner.

Glossary of terms. Bond Quasi fidelity insurance needed by a person who acts as an insolvency practitioner. Glossary of terms Administration Order a) A Court order placing the company that is, or is likely to become, unable to pay its debts under the control of an administrator following an application by, inter

More information

Located in the heart of Central America with a population of

Located in the heart of Central America with a population of El Salvador Romero Pineda & Asociados El Salvador José Roberto Romero, managing partner Antonio Mendez, partner Romero Pineda & Asociados Located in the heart of Central America with a population of approximately

More information

DEBT. Law guide - Debt, bankruptcy & liquidation

DEBT. Law guide - Debt, bankruptcy & liquidation DEBT Law guide - Debt, bankruptcy & liquidation Contents Bankruptcy... 3 Arrangements with debtor... 6 Alternatives to bankruptcy... 8 Liquidation... 10 Distribution of assets... 11 Alternatives to liquidation...

More information

The Commonwealth of The Bahamas comprises over 700 islands and cays,

The Commonwealth of The Bahamas comprises over 700 islands and cays, The Bahamas Alexiou Knowles & Co and PricewaterhouseCoopers The Bahamas Emerick A Knowles, partner Alexiou Knowles & Co Clifford A Johnson, partner PricewaterhouseCoopers The Commonwealth of The Bahamas

More information

Insolvency and. Business Recovery. Procedures. A Brief Guide. Compiled by Compass Financial Recovery and Insolvency Ltd

Insolvency and. Business Recovery. Procedures. A Brief Guide. Compiled by Compass Financial Recovery and Insolvency Ltd Insolvency and Business Recovery Procedures A Brief Guide Compiled by Compass Financial Recovery and Insolvency Ltd I What is Insolvency? Insolvency is legally defined as: A company is insolvent (unable

More information

Insolvency: a glossary of terms

Insolvency: a glossary of terms Insolvency: a glossary of terms This is a brief explanation of some of the terms you may come across in company insolvency proceedings. Please note that this glossary is for general guidance only. Many

More information

Comparison of Corporate Insolvency Procedures

Comparison of Corporate Insolvency Procedures Comparison of Corporate Insolvency Procedures There are five categories of insolvency procedure for companies in England, Wales and Northern Ireland. These are: Company Voluntary Arrangement (CVA) Administration

More information

Forms of Corporate Insolvency

Forms of Corporate Insolvency Forms of Corporate Insolvency There are five categories of insolvency procedure for companies: Company Voluntary Arrangement; Administration; Administrative Receivership; Creditors Voluntary Liquidation;

More information

Formalities. CROSS-BORDER HANDBOOKS www.practicallaw.com/restructurehandbook 159

Formalities. CROSS-BORDER HANDBOOKS www.practicallaw.com/restructurehandbook 159 Restructuring and Insolvency 2007/08 South Africa South Africa Leonard Katz, Edward Nathan Sonnenbergs www.practicallaw.com/0-234-3973 SECURITY AND PRIORITIES Formalities 1. What are the most common forms

More information

Glossary of Terms: Insolvency and Restructuring

Glossary of Terms: Insolvency and Restructuring Glossary of Terms: Insolvency and Restructuring Administration Administration is the court supervised process by which a Licensed Insolvency Practitioner called an administrator takes control of an insolvent

More information

Insolvency and enforcement procedures in England & Wales

Insolvency and enforcement procedures in England & Wales Insolvency and enforcement procedures in England & Wales Contents Introduction...01 Company Voluntary Arrangement (CVA)...02 Scheme of Arrangement (Scheme)...05 Administration / Pre-pack Administration...08

More information

Insolvency: a glossary of terms

Insolvency: a glossary of terms INFORMATION SHEET 41 Insolvency: a glossary of terms This is a brief explanation of some of the terms you may come across in company insolvency proceedings. Please note that this glossary is for general

More information

Insolvency: a guide for directors

Insolvency: a guide for directors INFORMATION SHEET 42 Insolvency: a guide for directors This information sheet provides general information on insolvency for directors whose companies are in financial difficulty, or are insolvent, and

More information

THE WORLD BANK GLOBAL JUDGES FORUM COMMERCIAL ENFORCEMENT AND INSOLVENCY SYSTEMS COUNTRY: FINLAND. By Pauliine Koskelo TABLE OF CONTENTS

THE WORLD BANK GLOBAL JUDGES FORUM COMMERCIAL ENFORCEMENT AND INSOLVENCY SYSTEMS COUNTRY: FINLAND. By Pauliine Koskelo TABLE OF CONTENTS THE WORLD BANK GLOBAL JUDGES FORUM COMMERCIAL ENFORCEMENT AND INSOLVENCY SYSTEMS 19-23 MAY 2003 PEPPERDINE UNIVERSITY SCHOOL OF LAW MALIBU, CALIFORNIA COUNTRY: FINLAND By Pauliine Koskelo TABLE OF CONTENTS

More information

Corporate Insolvency in Ireland

Corporate Insolvency in Ireland Corporate Insolvency in Ireland 0 CORPORATE INSOLVENCY IN IRELAND Introduction The collapse of the celtic tiger in Ireland has triggered a significant increase in the number of corporate entities incorporated

More information

Overview of the English law administration procedure and practical guidance for creditors

Overview of the English law administration procedure and practical guidance for creditors Overview of the English law administration procedure and practical guidance for creditors Set out below is an overview of the administration procedure, together with some practical guidance on the steps

More information

Limited companies. Identifying a limited company. Liability for limited company debts. Information: formal insolvency proceedings.

Limited companies. Identifying a limited company. Liability for limited company debts. Information: formal insolvency proceedings. This fact sheet gives information about private limited companies. We will use the terms limited company and company for the rest of this fact sheet. We explain the responsibilities of limited company

More information

A Guide for Creditors

A Guide for Creditors A Guide for Creditors Contents 1. About this guide... 3 2. What is The Insolvency Service?... 3 3. What is insolvency?... 3 4. What are the insolvency procedures?... 4 5. Who deals with the insolvency

More information

Assets Anything that belongs to the debtor that may be used to pay his/her debts.

Assets Anything that belongs to the debtor that may be used to pay his/her debts. This is a brief explanation of some of the terms you may come across in debt and insolvency proceedings. Please note that this glossary is for general guidance only. Many of the terms have a specific technical

More information

Collection Manual Liquidation of Companies and other Company Law issues

Collection Manual Liquidation of Companies and other Company Law issues Collection Manual Liquidation of Companies and other Company Law issues Updated June 2014 CONTENTS 1 Introduction...3 2 What is Liquidation?...3 3 When is it appropriate to seek liquidation of a company?...3

More information

CONTENTS PART 1: GENERAL...4 PART 2: COMPANY VOLUNTARY ARRANGEMENTS...5 PART 3: RECEIVERSHIP...8 PART 4: WINDING UP...11 CHAPTER 1 GENERAL...

CONTENTS PART 1: GENERAL...4 PART 2: COMPANY VOLUNTARY ARRANGEMENTS...5 PART 3: RECEIVERSHIP...8 PART 4: WINDING UP...11 CHAPTER 1 GENERAL... INSOLVENCY LAW DIFC LAW No. 3 of 2009 CONTENTS PART 1: GENERAL...4 1. Title...4 2. Legislative Authority...4 3. Application of the Law...4 4. Date of enactment...4 5. Commencement...4 6. Interpretation...4

More information

Winding Up Part 11 of the Draft Companies Bill. Brendan Cooney Partner

Winding Up Part 11 of the Draft Companies Bill. Brendan Cooney Partner Winding Up Part 11 of the Draft Companies Bill Brendan Cooney Partner Contents of Presentation Part 11: Winding Up 1. Chapter 1 Preliminary and Interpretation 2. Chapter 2 Winding Up by the Court 3. Chapter

More information

Business Debtline www.businessdebtline.org 0800 0838 018

Business Debtline www.businessdebtline.org 0800 0838 018 BUSINESS DEBTLINE Business Debtline www.businessdebtline.org 0800 0838 018 DEALING WITH DEBTS OF A LIMITED COMPANY FACT SHEET NO. 5 NORTHERN IRELAND This fact sheet gives information about private limited

More information

Denmark. Chapter. Gorrissen Federspiel. 1 Issues Arising When a Company is in Financial Difficulties. 2 Formal Procedures

Denmark. Chapter. Gorrissen Federspiel. 1 Issues Arising When a Company is in Financial Difficulties. 2 Formal Procedures Chapter Lars Grøngaard Gorrissen Federspiel John Sommer Schmidt 1 Issues Arising When a Company is in Financial Difficulties 1.1 How does a creditor take security over assets in? Security over assets can

More information

Corporate Insolvency Law In Singapore

Corporate Insolvency Law In Singapore Corporate Insolvency Law In Singapore The Legal Consequences of Corporate Insolvency Insolvency is a term generally used to describe a legal person s state of financial affairs. Specifically insolvency

More information

OUT-OF-COURT RESTRUCTURING GUIDELINES FOR MAURITIUS

OUT-OF-COURT RESTRUCTURING GUIDELINES FOR MAURITIUS These Guidelines have been issued by the Insolvency Service and endorsed by the Bank of Mauritius. OUT-OF-COURT RESTRUCTURING GUIDELINES FOR MAURITIUS 1. INTRODUCTION It is a generally accepted global

More information

Dealing with Debt How to wind up your own company

Dealing with Debt How to wind up your own company Dealing with Debt How to wind up your own company Contents About this booklet 1 General information What is liquidation? What types of liquidation are there? Where can I get advice about liquidation? What

More information

GUIDE TO INSOLVENT LIQUIDATIONS IN BERMUDA

GUIDE TO INSOLVENT LIQUIDATIONS IN BERMUDA GUIDE TO INSOLVENT LIQUIDATIONS IN BERMUDA CONTENTS PREFACE 1 1. Introduction 2 2. Statutory Liquidation Procedures: an Overview 2 3. Compulsory Winding-up 2 4. Creditors Voluntary Winding-up 4 5. Related

More information

Liquidating an insolvent Jersey company

Liquidating an insolvent Jersey company Liquidating an insolvent Jersey company DECEMBER 2011 For more briefings visit mourantozannes.com This briefing is only intended to give a summary and general overview of the subject matter. It is not

More information

A voluntary bankruptcy under the BIA commences when a debtor files an assignment in bankruptcy with the Office of the Superintendent of Bankruptcy.

A voluntary bankruptcy under the BIA commences when a debtor files an assignment in bankruptcy with the Office of the Superintendent of Bankruptcy. Bankruptcy and Restructuring 121 BANKRUPTCY AND RESTRUCTURING Under Canadian constitutional law, the federal government has exclusive legislative control over bankruptcy and insolvency matters. Insolvency

More information

Winding Up Petition Guide how to deal with one

Winding Up Petition Guide how to deal with one A Practical Guide for Directors and Shareholders prepared by K2 Business Rescue a trading name of K2 Partners (Rescue) Limited Winding Up Petition Guide how to deal with one 1. INTRODUCTION This Guide

More information

DEED OF PRIORITIES. regulating priorities between two Debentures, to be used with factors/invoice discounters

DEED OF PRIORITIES. regulating priorities between two Debentures, to be used with factors/invoice discounters When this form has been completed and signed by the Customer and the Alternate Lender, send it to the Customer s Relationship Manager together with the completed Authority to contact form DEED OF PRIORITIES

More information

Company Insolvency Overview

Company Insolvency Overview February 2010 Introduction 1. This overview is a general information guide only to highlight the differences between the various types of external controllers over company assets. Creditors should seek

More information

(Informal Translation) Chapter One. General Provisions. 1- The deposit of securities with the Company or with any licensed entity;

(Informal Translation) Chapter One. General Provisions. 1- The deposit of securities with the Company or with any licensed entity; CAPITAL MARKET AUTHORITY (Informal Translation) Central Securities Depository and Registry Law No. 93 of 2000 Chapter One General Provisions Article 1 In this Law, the Company means a company licensed

More information

NOTE - This document is provided for guidance only and does not purport to be a legal interpretation. PERSONAL INSOLVENCY ACT 2012

NOTE - This document is provided for guidance only and does not purport to be a legal interpretation. PERSONAL INSOLVENCY ACT 2012 Background to and purpose of the Act PERSONAL INSOLVENCY ACT 2012 EXPLANATORY MEMORANDUM The Act provides for the reform of personal insolvency law and will introduce the following new non-judicial debt

More information

Corporate Insolvency in Ireland Dillon Eustace

Corporate Insolvency in Ireland Dillon Eustace Corporate Insolvency in Ireland Dillon Eustace Table of Contents Page 1. Mechanisms of Corporate Insolvency 1 2. Liquidation 1 3. Functions of the Liquidator 2 4. Liquidation and Creditors Rights 2 5.

More information

AMERICAN COLLEGE OF BANKRUPTCY INTERNATIONAL INSOLVENCY INSTITUTE JOINT DISCUSSION PANEL MARCH 18, 2005

AMERICAN COLLEGE OF BANKRUPTCY INTERNATIONAL INSOLVENCY INSTITUTE JOINT DISCUSSION PANEL MARCH 18, 2005 AMERICAN COLLEGE OF BANKRUPTCY INTERNATIONAL INSOLVENCY INSTITUTE JOINT DISCUSSION PANEL MARCH 18, 2005 UNCITRAL LEGISLATIVE GUIDE TREATMENT OF FINANCING INSOLVENCY PROCEEDINGS DANIEL M. GLOSBAND GOODWIN

More information

Australia. I. Generally

Australia. I. Generally Australia Texas New York Washington, DC Connecticut Dubai Kazakhstan London I. Generally Australian bankruptcy procedure is regulated by its Corporations Law, which is a single statute that governs almost

More information

Cayman Islands Insolvency Law

Cayman Islands Insolvency Law Cayman Islands Insolvency Law Foreword This memorandum has been prepared for the assistance of those who are considering issues pertaining to the insolvency of companies in the Cayman Islands. It deals

More information

A guide to creditors voluntary liquidations

A guide to creditors voluntary liquidations A guide to creditors voluntary liquidations Introduction A company can be put into liquidation voluntarily, at the instigation of its directors, or compulsorily, by order of the Court. The effect, in either

More information

Insolvency Act, 2063 (2006)

Insolvency Act, 2063 (2006) Insolvency Act, 2063 (2006) Date of authentication and publication: 4 Mangsir 2063 (20 November 2006) Act number 20 of the year 2063 (2006) An Act Made to Provide for Insolvency Proceedings Preamble: Whereas,

More information

Dealing With Debt. How to wind up your own company

Dealing With Debt. How to wind up your own company how to wind up your own company aug 2008.qxp:how to wind up your own company July 2008.qxd 26/03/2009 07:12 Dealing With Debt How to wind up your own company Page 1 Contents Page About this booklet....................................................3

More information

CROSS-BORDER HANDBOOKS www.practicallaw.com/restructurehandbook 59

CROSS-BORDER HANDBOOKS www.practicallaw.com/restructurehandbook 59 Restructuring and Insolvency 2009/10 Finland Finland Pauliina Tenhunen, Ville Ahtola and Anna-Kaisa Nenonen Castrén & Snellman Attorneys www.practicallaw.com/4-385-3928 Security and priorities 1. What

More information

SCHEDULE OF OPTIONS AVAILABLE TO INDIVIDUALS IN FINANCIAL DIFFICULTY

SCHEDULE OF OPTIONS AVAILABLE TO INDIVIDUALS IN FINANCIAL DIFFICULTY SCHEDULE OF OPTIONS AVAILABLE TO INDIVIDUALS IN FINANCIAL DIFFICULTY The most common options available to individuals who are unable to pay their debts are:- 1 Do nothing. 2 Obtain an unsecured debt consolidation

More information

Creditors voluntary liquidation

Creditors voluntary liquidation Creditors voluntary liquidation a guide for unsecured creditors Association of Business Recovery Professionals Creditors voluntary liquidation occurs where the shareholders, usually at the directors request,

More information

Reform of In-Court Restructurings in Germany New Options and Implications for Creditors, Debtors and Shareholders

Reform of In-Court Restructurings in Germany New Options and Implications for Creditors, Debtors and Shareholders BANKRUPTCY & REORGANIZATION/FINANCE CLIENT PUBLICATION March 2012... Reform of In-Court Restructurings in Germany New Options and Implications for Creditors, Debtors and Shareholders... With effect as

More information

Glossary of Terms - Hong Kong

Glossary of Terms - Hong Kong Glossary of Terms - Hong Kong Ad Valorem Fee Bankruptcy Ad Val, as it is known, was used to fund the operations of the Official Receiver's Office, but nowadays it goes into the general revenue. It has

More information

Liquidation: a guide for creditors

Liquidation: a guide for creditors Liquidation: a guide for creditors If a company is in financial difficulty, its shareholders, creditors or the court can put the company into liquidation. This information sheet provides general information

More information

BANKRUPTCY LAW IN THE KINGDOM OF THAILAND

BANKRUPTCY LAW IN THE KINGDOM OF THAILAND BANKRUPTCY LAW IN THE KINGDOM OF THAILAND Cynthia M. Pornavalai T: +66 2653 5559 E: cynthia.p@tillekeandgibbins.com I. Introduction The 1997 Asian financial crisis had crippled many Asian economies in

More information

LAWCASTLES TECHNICAL PAPERS

LAWCASTLES TECHNICAL PAPERS LAWCASTLES TECHNICAL PAPERS PAPER NO. 1 OF 2006 Statutory Corporate Insolvency Procedures in Tanzania Introduction This paper reviews statutory corporate insolvency procedures in Tanzania. The paper discusses

More information

Liquidation: a guide for creditors

Liquidation: a guide for creditors INFORMATION SHEET 45 Liquidation: a guide for creditors If a company is in financial difficulty, its shareholders, creditors or the court can put the company into liquidation. This information sheet provides

More information

Order of creditor and shareholder ranking on a company s insolvency

Order of creditor and shareholder ranking on a company s insolvency Order of creditor and shareholder ranking on a company insolvency This table is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit

More information

INSOLVENCY GUIDANCE NOTE STATEMENT OF INSOLVENCY PRACTICE 9 (NI): REMUNERATION OF INSOLVENCY OFFICE HOLDERS NORTHERN IRELAND

INSOLVENCY GUIDANCE NOTE STATEMENT OF INSOLVENCY PRACTICE 9 (NI): REMUNERATION OF INSOLVENCY OFFICE HOLDERS NORTHERN IRELAND INSOLVENCY GUIDANCE NOTE STATEMENT OF INSOLVENCY PRACTICE 9 (NI): REMUNERATION OF INSOLVENCY OFFICE HOLDERS NORTHERN IRELAND Contents Paragraph s Introduction 1-8 The Statutory provisions 9 Administration

More information

Lampros Vassiliou Allens Arthur Robinson Group Bangkok

Lampros Vassiliou Allens Arthur Robinson Group Bangkok Organisation for Economic Co-operation and Development the World Bank Asia Pacific Economic Cooperation and the Australian Treasury with the support of AusAID INSOLVENCY SYSTEMS IN ASIA: AN EFFICIENCY

More information

INSOLVENT TENANTS OPTIONS FOR LANDLORDS

INSOLVENT TENANTS OPTIONS FOR LANDLORDS INSOLVENT TENANTS OPTIONS FOR LANDLORDS Contents 1 Tenant in Liquidation... 2 2 Tenant in Administration... 3 3 Tenant in Receivership... 3 4 Tenant in Company Voluntary Arrangement... 5 5 Tenant in Bankruptcy...

More information

How To Find Out If A Company Is In An Insolvent Process

How To Find Out If A Company Is In An Insolvent Process Top ten questions from creditors of troubled companies A Guest Article by Julian Charles January 2010 What creditors want to know Below are the ten questions most frequently asked by creditors of companies

More information

Bermuda Winding-Up Procedures

Bermuda Winding-Up Procedures Bermuda Winding-Up Procedures Foreword The following is a summary of the law and procedure under the Companies Act 1981 ("the Act") in so far as it relates to liquidations of companies in Bermuda. The

More information

Financial Restructuring and Transactions IFT Information Note: No. 121. Introduction to Insolvency Processes Schemes of Arrangement and COMI shifting

Financial Restructuring and Transactions IFT Information Note: No. 121. Introduction to Insolvency Processes Schemes of Arrangement and COMI shifting INTRODUCTION This note is intended to act as an introduction to corporate insolvency procedures under the Insolvency Act 1986 (the Act ) (as amended by The Enterprise Act 2002) and otherwise together with

More information

Restructuring and insolvency in Switzerland Hartmann Müller Partners PricewaterhouseCoopers

Restructuring and insolvency in Switzerland Hartmann Müller Partners PricewaterhouseCoopers Restructuring and insolvency in Switzerland Hartmann Müller Partners PricewaterhouseCoopers This article first appeared in The European Restructuring and Insolvency Guide 2005/2006 published by Globe White

More information

He also has a duty not to diminish such assets as remain, so he is unlikely to enter into unprofitable contracts.

He also has a duty not to diminish such assets as remain, so he is unlikely to enter into unprofitable contracts. W.S.C.C. BUILDING CONTRACT DIRECTIVE BCD.50 CAPITAL & ASSET MANAGEMENT DATE: April 2010 Copyright Reserved PROCEDURES TO BE ADOPTED UPON THE INSOLVENCY OF A CONTRACTOR 1. A multitude of problems arise

More information

Common Bankruptcy Concerns for Lenders

Common Bankruptcy Concerns for Lenders Types of Bankruptcy, and Eligibility Common Bankruptcy Concerns for Lenders The U.S. Bankruptcy Code is divided into several different chapters. Some chapters are applicable to all types of bankruptcy

More information

BELIZE LIMITED LIABILITY PARTNERSHIP ACT CHAPTER 258 REVISED EDITION 2003 SHOWING THE SUBSTANTIVE LAWS AS AT 31ST MAY, 2003

BELIZE LIMITED LIABILITY PARTNERSHIP ACT CHAPTER 258 REVISED EDITION 2003 SHOWING THE SUBSTANTIVE LAWS AS AT 31ST MAY, 2003 BELIZE LIMITED LIABILITY PARTNERSHIP ACT CHAPTER 258 REVISED EDITION 2003 SHOWING THE SUBSTANTIVE LAWS AS AT 31ST MAY, 2003 This is a revised edition of the Substantive Laws, prepared by the Law Revision

More information

Creditors Rights in Insolvency Proceedings: A Practical Guide for Smaller Practices

Creditors Rights in Insolvency Proceedings: A Practical Guide for Smaller Practices BERMUDA BRITISH VIRGIN ISLANDS CAYMAN ISLANDS CYPRUS DUBAI HONG KONG LONDON MAURITIUS MOSCOW SÃO PAULO SINGAPORE conyersdill.com November 2010 Creditors Rights in Insolvency Proceedings: A Practical Guide

More information

STATEMENT OF INSOLVENCY PRACTICE 9 (SCOTLAND) REMUNERATION OF INSOLVENCY OFFICE HOLDERS

STATEMENT OF INSOLVENCY PRACTICE 9 (SCOTLAND) REMUNERATION OF INSOLVENCY OFFICE HOLDERS STATEMENT OF INSOLVENCY PRACTICE 9 (SCOTLAND) REMUNERATION OF INSOLVENCY OFFICE HOLDERS 1 INTRODUCTION 1.1 This Statement of Insolvency Practice (SIP) is one of a series issued to licensed insolvency practitioners

More information

Liquidators, Receivers and Examiners Their duties and powers

Liquidators, Receivers and Examiners Their duties and powers Liquidators, Receivers and Examiners Their duties and powers A quick guide Introduction We have produced this information booklet to explain the powers, duties and responsibilities of liquidators, receivers

More information

Guide to Debt Collection in Scotland

Guide to Debt Collection in Scotland There are a variety of debt collection procedures available in Scotland many of which are similar to those used elsewhere in the UK. The usual demand letters and statements will be issued but if the debtor

More information

Receivership: a guide for creditors

Receivership: a guide for creditors INFORMATION SHEET 54 Receivership: a guide for creditors If a company is in financial difficulty, a secured creditor or the court may put the company into receivership. This information sheet provides

More information

GUIDE TO STATUTORY DEMANDS. We provide positive solutions for businesses. Advice. Results. Sorted

GUIDE TO STATUTORY DEMANDS. We provide positive solutions for businesses. Advice. Results. Sorted GUIDE TO STATUTORY DEMANDS We provide positive solutions for businesses Advice. Results. Sorted CONTENTS 1. What is a Statutory Demand? 4 2. The statutory demand process 5 3. Step 1 - Serving a statutory

More information

INTERNATIONAL COLLECTIVE INVESTMENT SCHEMES LAW

INTERNATIONAL COLLECTIVE INVESTMENT SCHEMES LAW REPUBLIC OF CYPRUS INTERNATIONAL COLLECTIVE INVESTMENT SCHEMES LAW (No 47(I) of 1999) English translation prepared by The Central Bank of Cyprus ARRANGEMENT OF SECTIONS PART I PRELIMINARY AND GENERAL Section

More information

Collection Profile Israel

Collection Profile Israel Euler Hermes Collections Collection Profile Israel Collecting in Israel Payment terms in Israel are regulated by contract rather than by law, therefore the average DSO remains high and the paying behavior

More information

THE BASICS OF CHAPTER 11 BANKRUPTCY

THE BASICS OF CHAPTER 11 BANKRUPTCY THE BASICS OF CHAPTER 11 BANKRUPTCY Bankruptcy is a legal proceeding in which a debtor declares an inability to pay consumer or business debts as they become due. Debtors may seek to be excused from continuing

More information

INSOLVENCY IN THE PHILIPPINES

INSOLVENCY IN THE PHILIPPINES Quisumbing Torres XV. INSOLVENCY IN THE PHILIPPINES 1. Overview and Introduction to the Jurisdiction / Applicable Legislation There are three types of remedies available to a financially distressed individual

More information

DIFC Insolvency Regulations (IR)

DIFC Insolvency Regulations (IR) DIFC Insolvency Regulations (IR) 74085-00002 BK:9905372.1 1 1 October 2008 Contents The contents of this module are divided into the following Chapters, Sections and Annexes. 1. Introduction... 5 1.1 Application

More information

Jersey corporate insolvency - the two regimes

Jersey corporate insolvency - the two regimes www.bedellgroup.com Jersey Guernsey London Dublin Mauritius BVI Singapore Jersey corporate insolvency - the two regimes Bedell Cristin Jersey briefing briefing Introduction There are two principal regimes

More information

How To Plan A Bankruptcy In The United Kingdom

How To Plan A Bankruptcy In The United Kingdom The interpretations, opinions, and conclusions expressed in this presentation are entirely those of the author. They do not necessarily represent the views of the Turnaround Management Association or the

More information

APPENDIX B A CREDITORS GUIDE TO ADMINISTRATORS REMUNERATION SCOTLAND

APPENDIX B A CREDITORS GUIDE TO ADMINISTRATORS REMUNERATION SCOTLAND APPENDIX B A CREDITORS GUIDE TO ADMINISTRATORS REMUNERATION SCOTLAND This guide applies to all appointments on or after 6 April 2006. Any creditor requiring guidance on a case where the Insolvency Practitioner

More information

[Insert graphic] COMPANIES (INSOLVENCY AND RECEIVERSHIP) ACT 2009 (NO. 2 OF 2009)

[Insert graphic] COMPANIES (INSOLVENCY AND RECEIVERSHIP) ACT 2009 (NO. 2 OF 2009) [Insert graphic] COMPANIES (INSOLVENCY AND RECEIVERSHIP) ACT 2009 (NO. 2 OF 2009) 3 [Insert graphic] COMPANIES (INSOLVENCY AND RECEIVERSHIP) ACT 2009 (NO. 2 OF 2009) PASSED by the National Parliament

More information

Labuan Limited Partnerships and Limited Liability Partnerships

Labuan Limited Partnerships and Limited Liability Partnerships Labuan Limited Partnerships and Limited Liability Partnerships 1 laws OF MALAYSIA Act 707 LABUAN LIMITED PARTNERSHIPS AND LIMITED LIABILITY PARTNERSHIPS ACT 2010 2 Laws of Malaysia Act 707 Date of Royal

More information

CLEARING AND SETTLEMENT SYSTEMS BILL

CLEARING AND SETTLEMENT SYSTEMS BILL C1881 CLEARING AND SETTLEMENT SYSTEMS BILL CONTENTS Clause Page PART 1 PRELIMINARY 1. Short title and commencement... C1887 2. Interpretation... C1887 PART 2 DESIGNATION AND OVERSIGHT Division 1 Designation

More information

IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE SERVICES FROM AN ATTORNEY OR BANKRUPTCY PETITION PREPARER.

IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE SERVICES FROM AN ATTORNEY OR BANKRUPTCY PETITION PREPARER. IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE SERVICES FROM AN ATTORNEY OR BANKRUPTCY PETITION PREPARER. If you decide to seek bankruptcy relief, you can represent yourself, you can hire an attorney

More information

Insolvency and Liquidation

Insolvency and Liquidation Insolvency and Liquidation There are many different ways of dealing with company debt. In most cases, an authorised insolvency practitioner will be appointed to manage a company s affairs once insolvency

More information

Debt Recovery Guidance Page 1 of 5

Debt Recovery Guidance Page 1 of 5 Page 1 of 5 The guidance provided does not cover Insolvency Law but further details can be provided on request. Legal proceedings cannot be commenced until this deadline has passed. ROLE OF THE COURTS

More information

STANDARD CONDITIONS FOR INDIVIDUAL VOLUNTARY ARRANGEMENTS. Produced by the IVA FORUM

STANDARD CONDITIONS FOR INDIVIDUAL VOLUNTARY ARRANGEMENTS. Produced by the IVA FORUM Protocol Annex 4 STANDARD CONDITIONS FOR INDIVIDUAL VOLUNTARY ARRANGEMENTS Produced by the IVA FORUM Revised November 2013 For use in proposals issued on or after 1 January 2014 TABLE OF CONTENTS FOR STANDARD

More information

Restructuring and insolvency in the UK (England & Wales): overview

Restructuring and insolvency in the UK (England & Wales): overview GLOBAL GUIDE 2015/16 RESTRUCTURING AND INSOLVENCY Country Q&A Restructuring and insolvency in the UK (England & Wales): overview James Roome, Tom Bannister and Emma Simmonds Akin Gump LLP global.practicallaw.com/9-501-6812

More information

Briefing Note: Enforcement of a Judgment

Briefing Note: Enforcement of a Judgment An Introduction to the Briefing Note Obtaining an award of damages and/or costs may only be the first step in getting what you are entitled to. Where the party ordered to pay damages and/or costs (the

More information

REPUBLIC OF VANUATU INSOLVENCY (CROSS - BORDER) ACT NO. 4 OF 2013. Arrangement of Sections

REPUBLIC OF VANUATU INSOLVENCY (CROSS - BORDER) ACT NO. 4 OF 2013. Arrangement of Sections REPUBLIC OF VANUATU INSOLVENCY (CROSS - BORDER) ACT NO. 4 OF 2013 Arrangement of Sections 1 Purpose... 2 2 Interpretation... 2 3 Application of Model Law on Cross-Border Insolvency in Vanuatu... 3 4 Supreme

More information

STANDARD CONDITIONS FOR INDIVIDUAL VOLUNTARY ARRANGEMENTS. Produced by the IVA FORUM

STANDARD CONDITIONS FOR INDIVIDUAL VOLUNTARY ARRANGEMENTS. Produced by the IVA FORUM Protocol Annex 4 STANDARD CONDITIONS FOR INDIVIDUAL VOLUNTARY ARRANGEMENTS Produced by the IVA FORUM Revised January 25 th 2008 TABLE OF CONTENTS FOR STANDARD CONDITIONS PART I: INTERPRETATION Page 1 Definitions

More information

Institute of Directors

Institute of Directors Institute of Directors Companies facing difficulties Options for Directors Michael McAteer March 2015 Options for companies facing difficulties Insolvency options Receivership Provisional liquidation Court

More information

slaughter and may Common issues in corporate recovery and insolvency in England and Wales Sarah Paterson, partner and Thomas Vickers, associate

slaughter and may Common issues in corporate recovery and insolvency in England and Wales Sarah Paterson, partner and Thomas Vickers, associate slaughter and may Common issues in corporate recovery and insolvency in England and Wales july 2011 Sarah Paterson, partner and Thomas Vickers, associate 1. Issues Arising When a Company is in Financial

More information

INSOLVENCY AND AVAILABLE OPTIONS

INSOLVENCY AND AVAILABLE OPTIONS INSOLVENCY AND AVAILABLE OPTIONS Corporations Act 2001 - Section 95A 95A Solvency and insolvency (1) A person is solvent if, and only if, the person is able to pay all the person's debts as and when they

More information

Debt Solution Overview 2

Debt Solution Overview 2 Contents Debt Solution Overview 2 Debt Management What is a Debt Management Plan? 3 What are the benefits of a Debt Management Plan? 3 How does it work? 3 What debts can be included in a plan? 4 What debts

More information

GUIDANCE NOTES FOR DIRECTORS OF COMPANIES WHICH MAY BE MADE SUBJECT TO A FORMAL INSOLVENCY PROCEDURE. These notes are set out as follows: Page

GUIDANCE NOTES FOR DIRECTORS OF COMPANIES WHICH MAY BE MADE SUBJECT TO A FORMAL INSOLVENCY PROCEDURE. These notes are set out as follows: Page GUIDANCE NOTES FOR DIRECTORS OF COMPANIES WHICH MAY BE MADE SUBJECT TO A FORMAL INSOLVENCY PROCEDURE These notes are set out as follows: Page Introduction 1 Insolvency 1 The period up to the start of the

More information