Bankruptcy petition (Commercial) meaning

Martin v McLaren Construction Ltd and McLaren Construction Ltd v Martin Dawn Plc [2025] EWHC 406 (Ch) What are the practical implications of this case? This decision confirms that a debtor cannot fend off winding-up or bankruptcy petitions merely by disputing the sum claimed or pointing to set-offs or counterclaims exceeding the petition debt, in order to resist such relief. The court will interrogate the parties’ material in depth, weighing what is produced on both sides, and will apply an approach comparable to that used on a summary judgment application when assessing whether there is a real defence. While recognising that conspiracies are typically concealed and often difficult to evidence directly, a litigant advancing such an allegation must still produce some evidential foundation for it, particularly where the contention is not inherently convincing or appears improbable on its face. The ruling underlines that English courts are hesitant to imply terms into negotiated bargains, especially where the agreement operates perfectly sensibly without the addition and...

In this issue: Key R&I law developments Personal insolvency Directors and insolvency Insolvency litigation Financial institutions Daily and weekly news alerts Key dates for restructuring and insolvency professionals New content Key R&I law developments Insolvency Service launches five-year strategy to combat economic crime The Insolvency Service has unveiled its 2026–31 investigation and enforcement plan, materially broadening its role in addressing economic crime. It sets three principal aims: enforcing the UK insolvency framework, applying the Companies Act 1985, and tackling company-enabled economic crime. To counter money laundering and complex financial misconduct, it will deploy artificial intelligence and advanced analytics, while deepening cryptoasset expertise. Recent results evidence impact: 77 criminal convictions, more than 1,000 director disqualifications, and £4m in compensation secured in 2024–25. See: LNB News 16/07/2025 55. Personal insolvency Can a bankruptcy petition be determined at a hearing fixed to consider a set-aside application? In what circumstances can a guarantee support...

In this issue: Personal insolvency Corporate insolvency Document review Directors and insolvency Insolvency litigation Creditor's participation The office-holder International restructuring and insolvency Daily and weekly news alerts Key dates for restructuring and insolvency professionals New content Personal insolvency Judgment Alert: Mobile Telecommunications Company KSCP v Al Saud [2025] EWCA Civ 681 The Court of Appeal (Civil Division) rejected the petitioner’s application (Mobile Telecommunications Company KSCP) for permission to appeal the dismissal of its bankruptcy petition against Prince Hussam bin Saud bin Abdulaziz al Saud (Prince Hussam). The court found no realistic prospect that the petitioner could overturn the judge’s factual conclusions that, during the relevant three-year period preceding the petition, Prince Hussam did not have a ‘place of residence’ in England and Wales, as required by section 265(2)(b)(i) of the Insolvency Act 1986 to establish jurisdiction. The submission that mere access to accommodation would be enough was dismissed by the...

This glossary sets out numerous expressions regularly encountered in the restructuring & insolvency sphere. Words shown in bold within definitions are themselves explained in other entries in this glossary as well. A Article X The MLIJ contains a single provision named Article X, aimed at jurisdictions that have already implemented the MLCBI, like England, or are weighing its adoption. Article X states: ‘Not withstanding any prior interpretation to the contrary, the relief available under [insert a cross-reference to the legislation of this State enacting Article 21 of the UNCITRAL Model Law on Cross-Border Insolvency] includes recognition and enforcement of a judgment’ (see Practice Note: UNCITRAL model law on recognition and enforcement of insolvency-related judgments (MLIJ): Article X). Asset-backed security (ABS) A form of security anchored by asset pools, for example loans, leases, and credit card receivables. Assimilated law From 1 January 2024, ‘retained law’ has been retitled ‘assimilated law’. The body of domestic law originally arising from EU obligations, created by the European...

Banking & Finance glossary A Auditing and Accounting Organisation for Islamic Financial Institutions (AAOIFI) The foremost Islamic, international, autonomous, independent, not-for-profit corporate body that develops and issues accounting, auditing, governance, ethics and Shari’ah benchmarks and standards for Islamic Financial Institutions (IFIs) and the wider Islamic finance sector. Founded in Bahrain in 1991, it is backed by a number of institutional members across more than 45 countries, including central banks and regulatory authorities, financial institutions, accounting and auditing practices, and legal firms. Its pronouncements are currently applied by leading Islamic financial institutions across the world and have advanced a progressive and gradual harmonisation of global Islamic finance practice. It also delivers professional qualification programmes—notably Certified Islamic Professional Accountant (CIPA), Certified Shari’ah Adviser and Auditor (CSAA), and the corporate compliance programme—in efforts to strengthen the industry’s human capital and governance frameworks. For further details, see Practice Note: Key participants in the Islamic finance industry—Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). Acceleration Acceleration is the formal action...