News

Votes under Personal Guarantees in IVAs

Historically when receiving a vote for or against a proposal for a Voluntary Arrangement and the Chairman either disputes or is uncertain of the value of the supporting debt, the Chairman ordinarily admits the disputed or uncertain element for £1. However in the case of AB Agri Ltd v Curtis and others [2016] All ER (D) 121 (Jul), the court heard a case concerning a Chairman who, at a meeting regarding a debtor’s proposals for an Individual Voluntary Arrangement (“IVA”), exercised their discretion when dealing with the claim of a creditor for monies owed under a personal guarantee. The creditor in question had presented a Bankruptcy petition against the debtor […]

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HR1 forms and Insolvency

  Introduction The insolvency profession has been subject to significant press coverage over recent years in respect of the responsibilities of directors and administrators under employment law, specifically the legal requirement for advance notification of collective redundancies to be submitted by an employer where redundancies are to be made. HR1s Under the Trade Union and Labour Relations (Consolidation) Act 1992 (“TULRCA”), an employer must give advance notice to the Department of Business, Innovation and Skills by completing and submitting a HR1 form, which must also be sent to any recognised trade union and elected employee representatives. Where between 20 and 99 employees are to be made redundant from a single […]

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The Director Conduct Reporting Service

  Introduction Following last month’s article on the ‘Online Debtor Bankruptcy Portal’, we have decided to continue commenting on the move towards online resources in Insolvency, hence this article ‘The Online D Report Portal’ and the changes that came into effect on 6 April 2016. Pursuant to the duties and obligations contained within the Statement of Insolvency Practice 4, more commonly known as SIP 4, and the Company Directors Disqualification Act 1986 (“CDDA 86”), Insolvency Practitioners who are appointed as either an Administrative Receiver, an Administrator, or a Liquidator in a Creditors’ Voluntary Liquidation are required to submit information on the conduct of the company’s directors, including former directors, to […]

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The Online Debtor Bankruptcy Portal

Beginning 6 April 2016, those who wish to do so will be able to apply for their own bankruptcy online via www.gov.uk by using an online form instead of presenting their own petition at court, The www.gov.uk website already provides information on the different options available to assist those individuals suffering from financial difficulties. This reform to the current system is being made to ensure that those in financial distress can act quickly in order to access the right insolvency remedy. The government cites research confirming that many are intimidated by the court application even when bankruptcy may provide them with the relief needed. It is stated that this new […]

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The responsibility of Office Holder’s to make tough decisions

In the recent case of Parker V Nicholson and others [2015] EWHC 3881 (Ch) the Bankruptcy High Court dismissed an application for directions by a Insolvency Practitioner, in their capacity as Trustee in Bankruptcy, on whether they should admit a proof of debt and convene a meeting of creditors at a creditor’s request on the basis that IP’s role was to make hard decisions and such applications, unless made under exceptional circumstances, should be discouraged. The facts of the case are as follows: • The Insolvency Practitioner in the case was appointed Trustee in Bankruptcy of Debtor estate with effect from 3 December 2014. • Whilst the administration of the […]

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