Restructuring Roundup (UK)

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Here is our summary of key developments relevant to restructuring professionals that you might have missed, with links for further information.

In the recent case of VTB Capital, the court extended the period of administration for five years where the company was in distribution mode. Our recent blog post examines when a court might extend for a lengthy period.
And the Court of Appeal has recently had to consider “when is a winding up petition presented?” Given that this has consequences for the company, appointment of administrators, and antecedent transactions, the answer to that question is relevant to many. Our blog post not only answers this question – it is presented on the date the petition is filed AND the official receivers’ deposit is paid – but also considers whether technology changes should be taken into account when interpreting insolvency legislation.
Remember Fore Fitness and Re Active Wear? If not, see our previous blog post. In a further development, the court has considered whether a sole director can appoint administrators where the company operates under unamended Model Articles, but has previously had more than one director – concluding that they could. Some uncertainty remained after Active Wear. Our commentary on the case covers this in more detail.
Spotlight on “Environmental Considerations for Insolvency Practitioners” – our latest quick guide gives an overview of key considerations for insolvency practitioners (IPs) ahead of taking an appointment over a company that carries environmental risk.
Recently published Financial Sanctions Guidance for Insolvency Practitioners covers an IP’s reporting obligations under the financial sanctions regulations and provides links to other useful guidance. These changes come about as a consequence of amendments made by the Sanctions (EU Exit) (Miscellaneous Amendments) (No.2) Regulations 2024, which also creates a new insolvency licensing purpose under the licensing provisions – explained in the explanatory memorandum at Para 5.16(b). Although changes to reporting obligation will not come into force until May 2025, the new insolvency licensing purpose comes into effect this month which will allow OFSI to licence payments into frozen bank accounts (assuming they are still open!). Managing the sanctions regime can be tricky – so take advice if you need to!
Another area that can be challenging on an insolvency appointment is understanding and dealing with issues arising under the Building Safety Act 2022 (BSA). This recently updated guidance note is a helpful reminder of the notification requirements under the BSA on insolvency. If you blinked, you may have missed this the first time around.
Changes to bonding requirements came into force on 1 December under these regulations. They have also been helpfully summarised by the IPA.
And finally, see our Labour & Employment team’s Quarterly Board Briefing, which covers some of the key legal changes and actions relevant to employers in the areas of environmental, safety and governance (ESG); diversity, equity and inclusion (DEI); harassment, whistleblowing and investigations; and workforce reporting. Whilst these aren’t issues IP are used to grappling with, they are areas that are becoming more prevalent – being forewarned is being forearmed.

If you would like specific advice on any of these issues or anything else, please contact a member of our Restructuring & Insolvency team.

Seasons Greetings from our UK Restructuring team. We wish you a joyful holiday season and a prosperous New Year!

John Alderton Leeds

Russ Hill Birmingham

Charlotte Møller London

Monika Lorenzo-Perez London

Devinder Singh Birmingham

Vanessa Stuart Manchester

Restructuring Roundup (UK)

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