By Andrew Lacey and Danyal Ibrahim, McCabes
The Australian Government recently introduced the Insolvency Law Reform Bill 2015 into Parliament. The reforms are part of a wider government initiative, labelled the ‘National Innovation and Science Agenda’, which are designed to boost innovation and entrepreneurship amongst Australians.
By Dr. Attila Kovács, Kovács Réti Szegheõ Attorneys at Law
AAs of 1 July 2015 Act XLIX of 1991 on Bankruptcy and Liquidation proceedings (Bankruptcy Act) in coordination with the rules of the Hungarian Act III of 1952 on the Code of Civil Procedure (CPC) provides for comprehensive changes in civil proceedings, including bankruptcy and liquidation procedures.
By Stefano Loconte and Leonardo Angelastri, Loconte & Partners
Pursuant to Section 182-bis of the Italian Bankruptcy Law, a business that finds itself in severe difficulty and facing collapse can ask the court to approve a debt restructuring agreement reached with its creditors on condition that the agreement in question is with at least 60% of the entire pool of creditors and that those creditors who have elected not to be party to the agreement are guaranteed payment of their debt in full.
By Dr. Mariagiulia Signori, COMMA 10
In Italy, debt collection has undergone considerable changes. By means of two urgent reforms, important measures have been taken. L. 162/14 – November and L.D. 83/2015 – June, were issued to improve the efficacy of both the collection of receivables against debtors and sales of seized assets by public auction.
By Rajas Kasbekar, Little & Co.
Corporate insolvency in India was always governed by multiple laws. This led to multiple adjudicating bodies, for example the High Court, Debt Recovery Tribunal, Company Law Board (CLB) and the Board for Industrial and Financial Reconstruction (BIFR). The multiplicity resulted in long delays, copious paperwork and high costs.
By Rajas Kasbekar, Little & Co.
Corporate insolvency in India was always governed by multiple laws. This led to multiple adjudicating bodies, for example the High Court, Debt Recovery Tribunal, Company Law Board (CLB) and the Board for Industrial and Financial Reconstruction (BIFR). The multiplicity resulted in long delays, copious paperwork and high costs.
By Mario Kapp & Raffaela Lödl, KAPP & STRIMITZER
The previous experience of extrajudicial restructurings in Austria have shown that the cooperation of Banks (and other creditors), when working with financially troubled companies, is essential in minimising damages for all participants. Early and successful reorganisation can avoid the need for judicial proceedings and the negative social and economic consequences for the debtor.
By Götz Hempel, TeekensKarstens advocaten notarissen
On 4th June 2015, the Dutch Minister of Security and Justice sent the legislative proposal Act on the Continuity of Companies I regarding the introduction of pre-pack sales by a proposed trustee to the House of Representatives (Tweede Kamer) for further consultations.
By Sanjeeva Narayan, Ashwani & Associates
While Greece may be leading the way in terms of restructuring of debt, corporations in India have also adapted to the fad and have been applying for restructuring left right and centre. The slowdown in the economy after 2010-11 has had a ripple impact on the fortunes of India Inc. and lenders alike. With gross domestic product (GDP) growth decelerating from 8.4 per cent in 2010-11 to the sub-five per cent level in the first three quarters of the current financial year, the number of companies seeking succour from lenders under the aegis of the corporate debt restructuring (CDR) cell had almost doubled since 2011.
By KC Chia, KC Chia & Noor
“Corporate restructuring is an effective tool to resurrect distressed companies with a view of giving them a new lease of life, therefore enabling them to positively contribute to the nation’s future social and economic development…” Many companies in an economic downturn are making losses and may find themselves in a position of insolvency, meaning that they are unable to pay their debts as and when they fall due. Being trapped in such position is precarious, as there is a risk of the company being wound up, causing undue hardship to employees, creditors and shareholders alike. In addition, creditors will rush to enforce their debts, which is usually disastrous state of affairs. This may eventually lead to the end of a company following a harsh liquidation process, which is costly, less efficient and time consuming. However, there are revival mechanisms in place to address such issues, depending on the root cause.
