IPA exclusive industry update from Insolvency Insider
IPA Insolvency Practitioner newsletter, September 2024
A specially curated selection of the top stories for IPA members from Insolvency Insider Editor, Dina Kovacevic. More information on all the stories and the link to subscribe to the newsletter is here.
Recent Insolvencies
Ambatovy Minerals Société Anonyme and Dynatec Madagascar Société Anonyme, which operate the Ambatovy nickel project in Madagascar, have filed an English restructuring plan. The companies are majority owned by Japanese Sumitomo Corporation, which has stated that the filing is part of the company’s effort to ensure the stable and efficient operation of the project and not a liquidation process. The Ambatovy project has resulted in an accumulated loss of 410 billion yen (approximately $2.8 billion) for Sumitomo, including a total impairment loss of 265.5 billion yen (approximately $1.8 billion) to date. Sullivan & Cromwell are representing the companies.
Curzon Energy (LSE:CZN), a global energy company focused on US based natural gas projects, has filed a CVA proposal which provides for a restructuring of the business in order to eliminate existing liabilities of approximately £3.2 million. The terms of the CVA provide for creditors to receive (i) a cash payment and (ii) the issue of convertible loan notes. The meeting to vote on the CVA will be held on 5 September. Antony Batty & Co is the CVA administrator. John Bolitho, Andrew Jones and Michelle Jones as trustees of the Yewtree Design & Build LTD SSAS have a registered charge against the company.
Atherton Corporate (UK) and Atherton Corporate Rescue, connected corporate rescue firms, as well as five associated companies, have been wound up. The companies claimed their services were ‘a legal alternative to using insolvency practitioners’ and routinely encouraged directors of struggling companies to sell their businesses and avoid liquidation, advising they would have no further responsibility for their company or its debts. They also advised would-be customers that they could delay providing information to Companies House so they could continue to access the distressed company’s bank account. The Official Receiver was appointed liquidator of five of the companies, while Julie Tait of Grant Thornton was appointed liquidator of two companies.
Insights
Adam Brown and Ben Larkin of Jones Day share that the Court has issued a landmark decision, awarding £150 million against two former BHS directors and for the first time addressing how equitable compensation should be calculated for breaches by directors of what has been termed the “modified Sequana duty”.
William Day of Three Verulam Buildings explores the rules governing the failure of investment banks, payment and electronic money institutions and explains why they are amongst the most complicated in insolvency law.
John Houghton, Rachel Whittaker and Nazmul Miah of Greenberg Traurig highlight some staggering statistics regarding the number of UK universities currently carrying out redundancy and restructuring programmes and examine how this may impact the purpose-built student accommodation market, which has to date remained a robust and attractive one for investors.
Please note that guest content does not necessarily represent the views of the IPA.