Related insights: Finance: Banking, Restructuring, Insolvency

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UK Supreme Court clarifies the rule of "reflective loss"

28 Jul 2020
The UK's Supreme Court ("UKSC") has handed down its judgment following the hearing of the appeal in the case of Sevilleja v Marex Financial Limited [2020] UKSC 31 ("Marex"). The appeal was against the decision of the Court of Appeal to find that the rule of reflective loss applied to 90% of Marex's claim, which was brought in its capacity as a creditor.
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Corporate Insolvency and Governance Act 2020: an update

02 Jul 2020
On 26 June 2020, the Corporate Insolvency and Governance Act 2020 (the "CIGA") came into effect. As anticipated in our previous article the CIGA was fast-tracked through Parliament and some amendments were ultimately made prior to it becoming law. While these amendments were not substantive, there are some key changes/clarifications between the first draft and the enacted legislation.
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Charities in the wake of COVID-19 - financial challenges and insolvency

24 Jun 2020
The pandemic has strained the fabric of society with its impacts felt across the full spectrum of charities across the sector. Charities are ready to embrace that challenge. Many can see an opportunity to make more difference, to more people, than ever before. But we must not lose sight of the fact that charities are stepping up to the plate against a backdrop of their own difficulties. Fundraising activities have been restricted and volunteers forced to shield.
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Winding-up petitions in the COVID-19 era: where are we now?

04 Jun 2020
The decision of Mr Justice Morgan in A Company (Injunction To Restrain Presentation of Petition) [2020] EWHC 1406 (Ch) (judgment anonymised) which was handed down on 2 June 2020 will be of interest to tenants and landlords alike in the current climate. The judgment, which follows the decision in Travelodge Ltd v Prime Aesthetics Ltd [2020] EWHC 1217 (Ch) will be of huge precedent value to commercial tenants that have been impacted by coronavirus and have been unable to meet their rent obligations as a result. The decision also sets an interesting precedent in another respect, namely the ability of a debtor to seek an injunction on the presentation of a winding up petition, not on the usual basis of a disputed debt but on the basis of measures to be implemented under pending legislation, in this case the Corporate Insolvency and Governance Bill.
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FCA updates on Business Interruption Test Case

02 Jun 2020
We previously reported on FCA's intentions to bring a test case to obtain court declarations that would help resolve contractual uncertainty in several business interruption policies, stemming from claims relating to COVID-19. On 1 June, it confirmed the results of its enquiries to date, and its next steps.
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EU crowdfunding regulation – investor protection aspects

27 May 2020
In this article we consider the provisions that deal with ensuring investor protection, including examining who can invest on a crowdfunding platform, what standards apply to investor communications and marketing, what the pre-contract information requirements are and what the proposal says about investors who wish to cancel or sell their investments.