IPA exclusive industry update from Insolvency Insider

IPA Insolvency Practitioner newsletter, October 2022

Contents

• Paul Smith, CEO
• Samantha Keen, President
• Insolvency Code of Ethics – internal audit
• HMRC update
• Restructuring and insolvency of FCA regulated firms
• Celebrate the winners of the IPA Awards – book now for the Awards Reception on 9th November
• IPA Learning | Corporate Insolvency Review 2022 (CPD: 1.5h)
• Don’t miss the 14th Personal Insolvency Conference (CPD: 6h)
• IPA Roadshow roundup
• Exclusive discounts on training from the IPA and our partners – make savings on essential CPD
• Membership and licence renewals
• CPI England & Wales examination
• NEW member benefit: 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)
• What happens if a director misuses a Bounce Back Loan? 
• What does the end of the lease forfeiture restrictions mean for commercial landlords?

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

• Ajay Ajit Peter Kerkar, the former Group CEO and Director of collapsed travel firm Cox & Kings Limited, was adjudged bankrupt earlier this year, on a petition by Investment Opportunities IV Pte. Limited, owed approximately £53 million on loans that it had provided to Cox & Kings which were guaranteed by Mr. Kerkar. Mr. Kerkar had previously attempted to set aside a statutory demand served on him by Investment Opportunities, arguing that Investment Opportunities had engineered a default under the loans and had perpetrated a fraud on Cox & Kings, resulting in it being stripped of funds and entering a corporate insolvency resolution process in India. The Court ultimately ruled that Mr. Kerkar’s allegations were based on surmise and unsubstantiated, and had no reasonable chance of any success. Joanne Wright and Edwin Kirker of Kroll Advisory were appointed as joint Trustees. Alex Thompson of Gateley is instructed.
• WRFC Trading Ltd., the company that owns the Worcester Warriors Premiership rugby club, entered administration on 26 September, while Sixways Stadium was placed under receivership. Worcester are burdened by debts totalling more than £25million, including at least £6m in unpaid tax and £14m to the Department for Digital, Culture, Media and Sport, Worcester’s biggest creditor. The owners of the club failed to meet the Rugby Football Union’s deadline to evidence insurance cover, availability of funds to meet the monthly payroll and a credible plan to take the club forward. The club has been suspended from all competitions, and the stadium has closed with no indication when it will reopen. Parent company WRFC Trading Limited is not subject to insolvency proceedings, but has been served with a winding up petition from HMRC, with a hearing date set for 5 October. Julie Palmer, Julian Pitts and Andrew Hook of Begbies Traynor were appointed as Joint Administrators over WRFC Trading and Receivers over Sixways Stadium.
• Festicket Ltd, a UK-based ticketing company, formally entered administration on 13 September, having been unable to come up with a rescue plan after filing a moratorium in August. The company, which specialised in selling packages for music festivals, was impacted by the Covid-19 pandemic and ensuing shutdown of live music events. It has been reported that US-based ticket exchange service Lyte has agreed to acquire certain assets of Event Genius, which is owned by Festicket.  Lee Manning, Cameron Gunn and Simon Jagger of ReSolve were appointed joint administrators. Kreos Capital V (UK) Limited has a registered charge against the company.

Insights

• Tim Carter and Helen Martin of Stevens & Bolton highlight some of the key issues faced by a purchaser when acquiring a business by way of a pre-pack sale, including potential tenancy issues, the assumption of employee liabilities, the need to indemnify administrators, and more.

• Tim Carter and Helen Martin of Stevens & Bolton highlight the main findings of the government’s interim report on its review of the three permanent measures introduced by CIGA, including the introduction of a new category of “super-priority” liabilities in an insolvency proceeding following a moratorium, which continues to cause significant concern, and how the cross-class cram down in a Part 26A plan has allowed the UK to maintain its international status as a restructuring jurisdiction.

• Tom Astle, Alex Kay, James Maltby and Naomi Parmar of Hogan Lovells summarise the sanction of the first Part 26 scheme to address expressly the position of scheme creditors subject to sanctions imposed as a result of the war in Ukraine, and query whether the outcome will be any different in a scenario where sanctioned creditors are not supportive of the relevant restructuring.

To stay current on all market news and insights, make sure you subscribe to Insolvency Insider’s free weekly newsletter.