Paragon Offshore: Judgment on Challenge to 2017 Restructuring and the Limits of the Rule 12.59 Review Jurisdiction

The Insolvency and Companies Court in London handed down judgment on Monday, 19 October 2020 rejecting a shareholder challenge to the 2017 restructuring of Paragon Offshore plc (in liquidation) (the “Company”).

The judgment gives helpful guidance on the approach taken by insolvency courts to reviewing, rescinding or varying their orders under rule 12.59 of The Insolvency (England and Wales) Rules 2016.

It also gives a stark demonstration of where the rule 12.59 jurisdiction ends and the appellate jurisdiction begins, with Deputy ICC Judge Agnello QC declaring the rule 12.59 applications in this case to be “totally without merit”.
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Extension on the Temporary Restrictions on Statutory Demands and Winding Up and Other Measures Under the Corporate Insolvency and Governance Act 2020

Today the Department for Business, Energy and Industrial Strategy announced that certain temporary measures put in place under the Corporate Insolvency and Governance Act 2020 (“CIGA”), which came into force on 26 June, will be extended. The Corporate Insolvency and Governance Act 2020 (Coronavirus) (Extension of the Relevant Period) RegulationsRead the full article →

Landmark Lehman Subordinated Debt Ruling

The High Court in London gave judgment on Friday, 3 July 2020 on the relative ranking of over $10 billion of subordinated liabilities in the administrations of two entities in the Lehman Brothers group. The judgment covers a series of important issues for restructurings and insolvencies, including: the provability andRead the full article →

THE NEW RESTRUCTURING PLAN – IN DEPTH

The new UK legislation for companies in financial difficulty represents a fundamental shift in approach to restructuring in Europe and adds an important new tool to the UK restructuring framework.  The availability of a plan proposed under the new Part 26A of the Companies Act 2006 (a “Restructuring Plan”) willRead the full article →