Restructuring Roundup (UK)

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

• Restructuring Plans are like buses, you wait for the next one attempting to restructure HMRC debt, and then three come along at once. Outside Clinic, Enzen and Capricorn Energy have all recently proposed plans which seek to deal with HMRC debt in one way or another. With the sanction hearings for Enzen and the Outside Clinic taking place last week our blog posts give insight into the stance HMRC took.
• GoodBox was the first regional restructuring plan and since sanction the matter has rumbled on with the former administrators of the company seeking to recover their unpaid fees from the company, with a question mark over how they do that. The Court of Appeal has recently considered this, and with permission from Eleanor Temple KC who acted for the former administrators, read the outcome here.
• Following the decision in Hayward whereby it has become a procedural requirement to issue two sets of proceedings where litigation involves both “insolvency” and “non insolvency” claims, practitioners might be interested to follow the Park Regis case where the court allowed an IP to continue with proceedings notwithstanding that all claims were issued as insolvency claims. The decision is subject to appeal, but if not overturned then could this signal a change in process (again)? – our blog post comments on this further.
• Following the litigation theme, although office-holders rarely bring claims under s423 of the Insolvency Act 1986 a recent decision interpreting the meaning of “transaction” under s423 has confirmed transaction includes assets not beneficially owned by the debtor – widening the potential claims that an office holder can bring under s238 (transactions at undervalue).
• With a bit of Pensions slant, see our Common Signs of Employer Stress and Distress: What do Pension Trustees Need to Know and with Spring having just sprung you may also be interested to read our Pension colleagues Spring Hot Topics in Pensions. Watch out for our newest quick guide focusing on pension schemes and restructuring plan!
• These new FAQs dealing with Financial Sanctions explain: Which insolvency practitioner activities are not caught by the financial sanctions reporting requirements.
• Companies House has published a couple of helpful guidance notes explaining the process of restoring a company and an LLP to the company register – a process that is useful if an asset or claim comes to light following the dissolution of an insolvent company. However, if the intention is to wind up a company at the same time the court will expect that application to be made by way of a double-barrelled order (not Part 8 claim) – something which is not covered in this guidance. If you want to know more about “double barrelled” orders please contact one of the team.
• Given the impact that disruptions in supply chains can have on corporates and their success (or failure) our Global Supply Chain blog has the latest news and updates for you to sign up to.
• Over the last few months, the Employment Rights Bill has been making its way through the parliamentary process, and the government has tabled several amendments to the bill. In this publication, colleagues in our Labour & Employment team set out the key changes put forward by the government, and the potential implications for employers.

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