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...

2022 Restructuring and Insolvency Case Digest: Schemes, Part 26A Plans, Directors’ Duties, Sanctions and Cross‑Border Issues [Archived]

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes

2022: Key Restructuring & insolvency cases [Archived]

ARCHIVED: This Practice Note is archived and no longer maintained.

Pickering v Hughes [2022] EWHC 3359 (Ch) - 23 December 2022 - Unfair prejudice petition under section 994 of the Companies Act 2006. A long‑running family unfair prejudice claim did not succeed.
Re Lehman Brothers International (Europe) (in administration); Grant v FR Acquisitions Corporation (Europe) Ltd [2022] EWHC 3366 (Ch) - 23 December 2022 - Part 36 and administrators’ offer. The court confirmed Part 36 applied to an Administrators’ offer.
Re Veon Holdings BV [2022] EWHC 3473 (Ch) - 21 December 2022 - Principles for determining class composition in schemes of arrangement. Class composition for schemes considered.
Kaye v Lees [2022] EWHC 3326 (KB) - 21 December 2022 - Breathing Space Regulations, subrogated debt and enforcement action. Breathing Space, subrogation and enforcement issues addressed.
Stanford International Bank Ltd (in liquidation) v HSBC Bank plc [2022] UKSC 34; [2022] All ER (D) 68 (Dec) - 21 December 2022 - Alleged breach of the Quincecare duty owed to an insolvent bank. No loss was found to flow from any breach owed to the insolvent company.

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