Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Insolvency definition

What does Insolvency mean? In practice, insolvency describes a financial state where a debtor cannot meet liabilities when due, triggering remedies such as administration, liquidation or bankruptcy and informing directors’ duties and avoidance claims. For companies in England & Wales, Scotland and Northern Ireland, the Insolvency Act 1986, s 123 sets two alternative tests: - Cash‑flow insolvency: an inability to pay debts as they fall due. The inquiry is practical and forward‑looking, not confined to today’s bills (Re Patrick & Lyon Ltd [1933] Ch 786; BNY Corporate Trustee Services Ltd v Eurosail [2013] UKSC 28). - Balance‑sheet insolvency: liabilities (including contingent and prospective liabilities) exceed assets on...

2021 Restructuring and Insolvency: Key Cases on CVAs, Schemes, Restructuring Plans and Cross‑Border Issues

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes

2021: Key Restructuring & Insolvency cases [Archived]

Elser v Sands [2022] EWHC 32 (Ch) - 22 December 2021: Material irregularity at a creditors’ meeting; votes were set aside on that basis (Elser v Sands).
AFM (1932) Ltd v Belisco Estates Ltd [2021] EWHC 3460 (Ch) - 21 December 2021: The court unpacked a complex web of dealings to test proper grounds for payments; the Insolvency and Companies Court notes that ‘nothing is as it seems’ in The Great Gatsby and Insolvency (AFM (1932) Ltd v Belisco Estates Ltd).
Magan v Wilton Management Ltd [2021] EWHC 3393 (Ch) - 17 December 2021: Bankruptcy order annulled pursuant to section 282(1)(a) of the Insolvency Act 1986 (IA 1986) (Magan v Wilton Management Ltd).
Re Bulb Energy Ltd [2021] EWHC 3680 (Ch) - 15 December 2021: Energy sector special administration; mandatory provisions displaced by statutory interpretation and inherent jurisdiction (Re Bulb Energy Ltd).
Re Li Shu Chung (also known as Ken Li Shu Chung) Chen v Li...

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