IPA exclusive industry update from Insolvency Insider

IPA Insolvency Practitioner newsletter, January 2023

Contents

• Paul Smith, CEO
• Samantha Keen, President
• Important upcoming changes to Statement of Insolvency Practice 3.1 (Individual Voluntary Arrangements)
• Ongoing monitoring of AML matters in an appointment
• HMRC update
• Mitigating Your Risk: A Practical Guide to Insurance in Insolvency (CPD: 1.5h)
• The Power of Diversity: The Key to Unlocking Talent in Insolvency (CPD: 4h)
• 2023 Annual Conference (CPD: 6h)
• Make savings on essential CPD with exclusive discounts on training from the IPA and our partners
• IPA examinations update
• Discounted meeting facilities from Office Space in Town (member login required to view)
• Save money on your airport parking with APH! (Member login required to view)
• Need new IT products? Claim exclusive IPA membership offers from Dell
• CPI training with BPP – special offer for IPA members (member login required to view)
• Discover the new IPA Charity of the Year
• Join the Turn2us IPA Step Challenge!
• Judicial selection: Fee paid Economist Member of the Upper Tribunal Tax and Chancery Chamber

A specially curated selection of the top stories for IPA members from Insolvency Insider Editor, Henry Louis. More information on all the stories and the link to subscribe to the newsletter is here.

Recent Insolvencies

• Cartwright King Limited, a national law firm and one of the UK’s largest providers of Legal Aid services, employing 80 people out of 11 offices, entered administration on 23 December. Mark Thornton and Martha Thompson of BDO were appointed joint administrators. The joint administrators explained that difficult trading conditions alongside issues caused by Covid-19 and the continuing court backlogs resulted in cashflow issues for the firm from which it was unable to recover. Immediately upon their appointment, the joint administrators completed the sale of the business and assets in a pre-pack deal to AWH Acquisition Corp. The firm will continue to trade under the Cartwright King name, ensuring continuity of cases and the transfer of all 80 employees to the purchaser. Clydesdale Bank PLC has a registered charge against the firm.
• Consuma Paper Products Limited, a Lincolnshire paper products manufacturer, entered administration on 1 December. Mike Dillon and Andrew Poxon of Leonard Curtis were appointed joint administrators and sold the business on the same day to a connected party, saving approximately 200 jobs. The business will continue to trade as Northwood Consuma Tissue under the ownership of The Northwood Companies, and will supply facial tissues, household towels and toilet paper to some of the UK’s biggest grocery retailers. Bibby Financial Services Ltd has two registered charges against the company, and Northwood Paper Sales Limited and Lgb & Co. Limited each has one. 
• Burleighs Gin Limited, an award-winning Leicestershire craft gin distillery, entered administration on 5 December. David Elliott and Bai Cham of Begbies Traynor were appointed joint administrators. HMRC, which stated it was owed money by the company, had reportedly presented a winding up petition which was due to be heard on 14 December. The joint administrators have said a preferred bidder has been found and a sale could be completed before Christmas. Fse Meif LP and Autarky Ventures Limited each has a registered charge against the company.

Insights

• John Adams and Matthew Letts of Penningtons discuss whether a winding-up or bankruptcy petition can be based upon a liquidated crypto debt, ultimately concluding that these remedies they may not be the best options available in the circumstances. Read more
• Stephen Phillips of FreiLibertas Law describes how an often-overlooked provision in a standard share charge allows a lender to use a little-known remedy called ‘appropriation’, which enables a lender to become the owner of the shares without the need to go through a court-based foreclosure process or to undertake a sales process. Read more

• Joe Bannister and Pippa Ellis of DAC Beachcroft examine whether the current increase in insolvencies, which is driven by the growth in litigation funding and ATE insurance, will result in more claims against Insolvency Practitioners. Read more

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