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UK restructuring and insolvency: Supreme Court on IA 1986 s213, Part 26A cram down, ICAI RPB revocation, sanctions duties for IPs, and key judgments—8 May 2025

Published on: 08 May 2025

Published by a LexisNexis Restructuring & Insolvency expert
Legal News
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Article summary

Restructuring & Insolvency weekly highlights—8 May 2025

In this issue:

  • Key R&I law developments
  • Insolvency litigation
  • Restructuring
  • Corporate insolvency processes
  • Directors and insolvency
  • Daily and weekly news alerts
  • Key dates for restructuring and insolvency professionals
  • New content
  • New Q&As

Key R&I law developments

Insolvency Practitioners (Recognised Professional Bodies) (Revocation of Recognition of the Institute of Chartered Accountants in Ireland) Order 2025 SI 2025/549: This instrument withdraws recognition of the Institute of CAI as an RPB entrusted with authorising and supervising insolvency practitioners. It takes effect on 1 June 2025. See: LNB News 07/05/2025 27.

Insolvency litigation

Supreme Court confirms that section 213 of the Insolvency Act 1986 is not restricted to those involved in the management or control of the company’s business (Bilta (UK) Ltd (in liquidation) v Tradition Financial Services Ltd; Nathanael Eurl Ltd (in liquidation) v Tradition Financial Services Ltd). The Supreme Court unanimously refused both appeals. Applying orthodox statutory construction, the court held that IA 1986, s 213 on fraudulent trading is not confined to individuals engaged in managing or directing the company’s business, including directors. Accordingly, liability under s 213 may extend beyond controllers or managers of the company, consistent with statutory wording on fraudulent trading...

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