Insolvency event meaning

When does a section 75 debt arise? An s 75 liability crystallises in respect of an occupational pension scheme that is underfunded on a buy-out basis and: an employment-cessation event happens for a relevant participating employer within a multi-employer scheme an insolvency event occurs in relation to a participating employer of the scheme, or the scheme formally goes into winding up In a multi-employer scheme, an employer’s s 75 debt is its allocated share of the scheme deficit, appropriately assessed on a buy-out basis. As an alternative to immediately paying the s 75 debt in full, an employer may enter into a deferred debt arrangement, an apportionment arrangement, or a withdrawal arrangement. Section 75 does not apply at all to money purchase schemes, unregistered pension schemes, unfunded public sector schemes, and a scheme with only one member. ...

Flowchart Through this Flowchart, the requisite criteria are outlined for the court to find a transaction amounts to a preference and to order relief accordingly...

This Checklist outlines the principal risks and points to weigh when taking steps to build a resilient supply chain, covering demand, communication, mapping, supplier requirements, contingency plans, supplier agreements, supplier distress and insolvency, fraud, and de‑risking. It accompanies Practice Note: Securing a resilient supply chain. Demand In relation to demand, have you: Evaluated the possible effects of a major supply chain event (eg geopolitical instability, a pandemic, or product shortages) on your customers/end users? Considered how a significant supply chain event could influence your distribution network and adjusted it as necessary? Assessed whether investing in technology (eg AI, digital twins, crisis and scenario modelling) could deliver solutions to sharp changes in supply and demand? Communication In relation to communication, have you: Kept strong, regular dialogue with key suppliers, logistics partners and end customers about what you are doing and the steps you are taking? ...

Checklist This Checklist applies when acquiring a long leasehold interest carrying a capital value, rather than a shorter tenancy at an open market rent, which is unlikely to attract any capital value. A purchaser’s solicitor should examine the landlord’s right to forfeit the lease, as in some situations particular forfeiture clauses can render a lease unacceptable as security to a lender and, in turn, unsuitable for purchase. Could the landlord exercise forfeiture upon the tenant’s insolvency? Where the landlord holds a right to forfeit on a tenant insolvency event, the property will not be acceptable security to a lender and is therefore inappropriate as an investment acquisition. Consequently, such a lease is neither appropriate for lending purposes nor for any purchase...

McGann v Eldonian Community Trust Ltd [2025] EWHC 3103 (Ch) What are the practical implications of this case? This ruling distils several concrete lessons for those dealing with charity governance, disputed liabilities, and the deployment of winding-up petitions. To begin with, the court stressed that a creditor’s locus is tightly policed: a petitioner must evidence a debt that is either unchallenged or incapable of sensible dispute. If governance defects, dubious paperwork, or uncertainties about authority surround the claim, the court will readily conclude there is a bona fide dispute on substantial grounds. That stance makes clear winding-up petition is not a lever for pressure where the liability is itself arguable. Next, the judgment spotlights the perils of informal or flawed governance in companies limited by guarantee. Omitting AGMs, failing to keep accurate membership lists, or not appointing trustees lawfully can seriously muddy issues of authority—for example, whether directors properly instructed advisers or authorised repayment. Further, the court’s response to the altered invoice shows that documentary irregularities—even if not determinative—gravely...

Pagden (as Security Trustee under a Security and Intercreditor Deed dated 24 December 2015) and others v Ridgley [2025] EWHC 2674 (Ch) What was the background? Orthios Eco Parks (Anglesey) Ltd and Orthios Power (Anglesey) Ltd (together, the Companies) sat within the Orthios Group. The group obtained capital from Cresta Energy Ltd (Cresta), which put £66m into bonds issued via MPB Eco Parks Ltd (MPB), and from between 300 and 400 retail investors who subscribed £36.4m of bonds. Those bonds were backed by fixed and floating charges over land granted by the Companies, with all such security vested in Mr Colin, as security trustee, under a Security Trust Deed. On 25 March 2022, after an event of default, Mr Colin used his qualifying floating charge to appoint Mr Ridgley as administrator of the Companies. He did so without consulting Cresta beforehand. In late April 2022, Mr Colin executed a letter authorising Mr Ridgley’s sale of the land subject to the fixed charges and agreeing the following: remuneration to Mr...

Original news Chief Constable of Greater Manchester Police v Wright [2015] EWHC 3824 (Ch), [2015] All ER (D) 270 (Nov) The Manchester County Court refused the claimant chief constable’s application, said to be made under POCA 2002, s 311, for permission to continue forfeiture proceedings against a bankrupt, concluding that, on a proper interpretation, no permission was needed under that section. Accordingly, any purported condition of leave—requiring the seized cash to be paid to the defendant trustee in bankruptcy—could not be attached and, in any event, would contravene POCA 2002, s 298(4). What was the background to the application? Three separate sums were taken by the police from Mohammed Tahir pursuant to POCA 2002, s 294 in August 2010 and May 2013. On 7 July 2014 Mr Tahir was declared bankrupt, and a trustee in bankruptcy (Miss Wright, the respondent) was appointed with effect from 14 August 2014. Following the bankruptcy, the police applied to the magistrates’ court for forfeiture of the cash. Owing to the bankruptcy,...

The resolution to wind-up A company can move into voluntary liquidation only if one of the following applies: its fixed duration has ended, or an event specified in its articles as triggering liquidation has occurred, and the company has approved an ordinary resolution to wind up; or it passes a special resolution to be wound up voluntarily. See: 97 Notice of meeting to pass ordinary or special resolution to wind up: Encyclopaedia of Forms and Precedents [1441] 103 Special resolution to wind up and appoint liquidator: Encyclopaedia of Forms and Precedents [1452] The former practice of proceeding by extraordinary resolution is no longer available under the Companies Act 2006. Where the directors make a declaration of solvency under section 89 of the Insolvency Act 1986 (IA 1986), the company may proceed by way of a members’ voluntary liquidation (MVL). For further information, see Practice Note: What is a members’ voluntary liquidation and when is...

What is an assessment period? When a qualifying insolvency event affects the sponsoring employer of an eligible scheme, the scheme moves into a Pension Protection Fund (PPF) assessment period as a result of that event. This arises on the occurrence of that event. The day on which that period starts is known as the ‘assessment date’ for the scheme. Since 3 January 2012, the assessment period is no longer required to last for at least 12 months. Throughout the assessment period, the PPF considers whether the scheme satisfies the requirements for entry into the PPF. In particular, the PPF will appoint an actuary to carry out a valuation of the scheme as at the assessment date, in order to determine whether the scheme’s assets are less than the protected liabilities—broadly, the benefits the PPF would pay to members if the scheme were to enter the PPF...

Banking regulation—Luxembourg—Q&A guide This Practice Note provides a jurisdiction-specific Q&A on banking regulation in Luxembourg, published in the Lexology Getting the Deal Through series by Law Business Research (law stated as at 7 February 2023). Authors: Loyens & Loeff—Adrien Pierre; Vanesa Gomez Pena. 1. What are the principal governmental and regulatory policies that govern the banking sector? Luxembourg is a leading financial centre, so nurturing the financial industry is a core policy aim. The Ministry of Finance partners with Luxembourg for Finance (the agency for the development of the financial centre) to promote, expand and diversify the Luxembourg financial centre, while identifying new opportunities. Digitalisation. Anti-money laundering and countering the financing of terrorism (AML/CFT). Sustainable finance. Financial education. Policies are being adapted as needed to respond to the covid-19 pandemic, to which the sector has shown strong resilience. 2. What are the defining characteristics of a bank to be caught by the banking laws and regulations? Is...

Letter for sub-contractor to send to employer in the event of main contractor insolvency [ [ Sub-contractor’s headed notepaper ] OR [ Sub-contractor’s address ] ] [ contact name, job title and department ] [ name of employer company ] [ address ] Dear [ contact name ] [ name of project ]—[ name of main contractor ]—Insolvency We believe that [ name of main contractor ] [ has entered into administration OR is in liquidation OR has commenced a moratorium OR other ] ....

1 Definitions Within this Agreement, certain expressions carry specific meanings. Illustrative terms include: AA 2020: the Agriculture Act 2020; ATA 1995: the Agricultural Tenancies Act 1995 Adjoining Property: Retained Land and nearby premises; Adjoining Property Rights: rights over the Holding benefiting such land Agreement: this instrument and any supplementary or collateral document Annual Rent: yearly sum payable from the Rent Commencement Date on Rent Days Authority: any statutory, public or local body, court, government department or duly authorised officers Conduits: media and equipment for carrying energy, data or substances Costs: losses, expenses, damages and liabilities Direct Payment: any BPS Payment or SFS Payment, as applicable Eligible Holding: parts of the Holding qualifying for a Rural Support Payment Forfeiture Event: designated insolvency processes, non-payment, or breach Genetically Modified Organisms: as defined by the Environmental Protection Act 1990, including modified or derived crops Holding: the identified property shown on the Plan Insured Risks: perils the Landlord...

[ To be produced on the headed paper of the lender issuing the demand ] To: [ Insert name of individual and/or position ] [ insert name of the Borrower or other relevant entity ] [ insert address ] [ insert facsimile/fax number ] [ insert email address ] [ copy [ specify to whom ] ] Sent by [ Hand OR First class post OR Facsimile OR Email ] [ Insert date of letter ] Letter of demand Facility Agreement dated [ insert date ] between [ insert name of lender ] (the Lender) and [ name of borrower ] (the Borrower) (the Facility Agreement). [ Debenture ] dated [ insert date ] executed by the Borrower in favour of the Lender (the Debenture). Unless stated otherwise, terms and expressions defined in the Facility Agreement bear the same meanings in this letter of demand. References to “you” mean the Borrower, and references...

Under section 193 of the Trade Union and Labour Relations (Consolidation) Act 1992 Employers are required to inform the Secretary of State for Business, Energy and Industrial Strategy (BEIS) before issuing any redundancy notices and, in any event: where 20 or more dismissals are contemplated within 90 days, no less than 30 days before the first dismissal takes effect where 100 or more dismissals are contemplated within 90 days, no less than 45 days before the first dismissal takes effect For BEIS notification purposes, the full 30- or 45-day interval must pass before the first dismissal occurs. Notification is made on Form HR1, submitted to The Insolvency Service. For additional details, see Practice Note: Collective redundancy—statutory information and consultation obligations, under the heading Obligation to notify BEIS (Form HR1). As stated in the Advance notification of redundancies: guidance for employers accompanying Form HR1, the notification date is ‘the date on which we receive your completed form’. Forms with any required information...