Creditor days meaning

The Corporate Insolvency and Governance Act 2020 introduced, on a temporary footing, substantial restrictions on a creditor’s ability to pursue a winding-up order against a company. For guidance on the position prior to 1 October 2021, see Practice Note: Corporate Insolvency and Governance Act 2020—temporary changes to corporate statutory demands and winding-up petitions [Archived]. For the regime applying from 1 October 2021 to 31 March 2022 (which included a higher threshold for petition debts and required a creditor to give 21 days’ notice of an intention to present a winding-up petition), see Practice Note: Corporate Insolvency and Governance Act 2022—winding-up petitions from 1 October 2021 to 31 March 2022 [Archived]. Serve statutory demand Prepare a statutory demand that contains the particulars mandated by rule 7.3 of the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024 (see Practice Note: Company statutory demand), and instruct a process server to effect service...

A glossary of frequently used terms and phrases in Scottish Private Client law, with the closest England and Wales equivalents (where applicable) and links to helpful websites Ab intestato Meaning From someone who dies without a will; describes property taken under the laws of intestate succession. Nearest English equivalent None Action of specific implement Meaning A court action seeking an order compelling a party to carry out a particular act. In Scotland there is no division between equitable and legal remedies, unlike England and Wales. Nearest English equivalent Specific performance (an equitable remedy for breach of contract that can be ordered alongside, or in place of, damages) Advance notice Meaning An entry in the relevant property register that protects the grantee of a deed intended for registration in the Land Register of Scotland. The protected period of 35 days begins on the day after registration....

Introduction to margin loans What is a margin loan? At a high level, a margin loan is credit extended to a borrower, secured by liquid assets pledged for the lender’s benefit. The collateral usually consists of instruments traded on public markets or exchanges, most commonly the borrower’s listed shares, which serve as the underlying assets. The outstanding balance under the margin loan facility is compared with the value of those assets through a loan to value test. Should the collateral’s value drop beneath an agreed threshold, a margin call arises, obliging the borrower to act—typically by adding cash or further security—to return the loan to value ratio to the agreed level. Because asset values are set by exchange-traded prices, the loan to value can fluctuate rapidly and is therefore usually checked daily at the close of trading on the relevant exchange, when prices are settled. This Practice Notice concentrates on margin loans secured over listed shares, though margin loans may alternatively be secured over other asset classes...

Opening proceedings When insolvency proceedings are begun, each route has its own procedure for service of the requisite documents. The positions for bankruptcy, compulsory liquidation and administration are outlined below. Bankruptcy Where a creditor presents a bankruptcy petition, it must be personally served by that creditor (or someone acting for them) on the debtor, unless the court orders substituted service. This is addressed in paragraph 1 and the table at the end of the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, Schedule 4. Service is commonly effected by the petitioning creditor, their solicitor, or authorised agent delivering a sealed copy of the bankruptcy petition to the debtor. The petition must be served at least 14 days before the first hearing, save where the court treats it as an expedited petition because: the debtor has absconded the court is satisfied the case merits an expedited hearing, or the debtor gives written consent to a hearing within 14 days ...

Current ratio Date of calculations: [ insert date of calculations ] Formula: Current assets ÷ Current liabilities Calculation: Result: Result from previous month/year: % movement: If the ratio slips under 1.0, the firm lacks sufficient current assets to meet its current liabilities as they become due. Compare this outcome to the previous current ratio result. If the current ratio is declining and nearing 1.0, calculate the other ratios to gain a clearer view of why the firm is running out of money...