Property insolvency

Consideration of the proposal What is the process of considering of the proposal? The nominee is required to call a company meeting to examine the proposal at a specified time, date and place, and must invite creditors to consider it through a decision procedure. The Insolvency ( England and Wales) Rules 2016 ( IR 2016), SI 2016/1024 apply to CVAs. The creditors’ decision date may take place on the same day as the company meeting, or on different days; in all cases, the creditors must reach their decision before the members, and the members’ decision must occur no later than five business days after the creditors’ decision. The decision date must be set not less than 14 days from delivery of the notice under IR 2016, SI 2016/1024, r 2.25, and not more than 28 days after the nominee’s report is filed with the court. To...

Under section 15 of the Bankruptcy Act 1914 (which preceded the Insolvency Act 1986 ( IA 1986)), a public examination was mandatory whenever a debtor was adjudged bankrupt. The IA 1986 provisions remove the obligation to hold a public examination in each and every case, but permit the official receiver ( OR) to apply to the court for the bankrupt’s public examination before the bankrupt is fully discharged. This route is commonly taken where the bankrupt has not co-operate d with the OR, for instance by failing to fulfil his/her duty to supply the OR with an inventory of their estate or any other information the OR reasonably requires, or by failing to attend on the OR. Although a public examination is not intended as a fishing exercise, it does enable the gathering of material that will aid the OR and/or any trustee in...

Key steps and timetables The restructuring plan ( RP) broadly follows the framework applied to schemes. In matters where Cross Class Cram- Down ( CCCD) or valuation points are likely to be challenged, or where valuation specialists may need to be cross-examined, it is sensible to inform the court at the convening hearing and to build sufficient time into the court timetable so these issues can be properly considered by the affected parties and the court. Although the court accepts that a distressed company cannot, and does not need to, negotiate bilaterally with every creditor impacted, there should be genuine efforts to engage at least with those with the greatest exposure. For reference, see Poundland (sanction) and News Analysis: Cross-class cramdown successfully used against nine dissenting classes ( Re Poundland Ltd)......

Waldorf Production UK Plc (the Company) seeks approval for a second Part 26A restructuring plan ( RP) at a convening hearing set for February 2026. Key points are outlined below (capitalised terms not defined here have the meanings given in the convening judgment). This renewed proposal follows the court’s refusal to sanction the first plan on fairness grounds and the potential leapfrog appeal to the Supreme Court, which the Company opted not to pursue in light of this second RP (see Waldorf Production UK Plc (sanction) and Practice Note: Part 26A restructuring plan deal debrief— Waldorf Production UK Plc). The second plan enables a sale to Harbour Energy PLC ( Harbour). This Deal Debrief sits within our Restructuring plans collection. For an in-depth review of core metrics from RPs filed in 2024 and commentary from leading figures in...

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Mitigation applies to all damages claims The notion that a claimant should mitigate their loss applies to every civil claim for damages, whether brought in contract, tort, or other recognised circumstances, although much of the case law on mitigation has arisen from contractual disputes. Consequently, even once causation and remoteness are established—subjects covered in practice notes on contractual breach, and on tort and negligence—the amount recoverable may still be affected if the claimant has not mitigated their loss. In essence, the innocent party cannot obtain damages for loss they could have avoided but did not, whether through unreasonable conduct or by failing to act. The key issue in mitigation is which steps it was reasonable, and which it was not, for the claimant to take. This is often referred to as the duty to mitigate or the rule on mitigation. What is the rule on mitigation? The rule on mitigation comprises three distinct components: The innocent party should take all reasonable measures to lessen their loss...

This Practice Note explores the doctrine of separate legal personality for a registered company, and surveys the relevant case law addressing the narrow situations in which the corporate veil might be pierced. It also separates true piercing or lifting of the veil from the more routine instances in which the veil is sidestepped by reliance on another legal or equitable entitlement. The analysis underscores the limited nature of this intervention and the authorities that define it. Corporate legal personality—the Salomon principle A duly incorporated company is a person distinct from its members, holding its own rights and bearing its own liabilities as an independent legal subject. This rule, often called the corporate veil or the Salomon principle, was most famously articulated by Lord MacNaghten in Salomon v Salomon: the company, at law, is wholly separate from the subscribers to the memorandum; even if, after incorporation, the undertaking remains exactly as before, with the same individuals managing it and the same people receiving the profits, the company is not the subscribers’ agent or their trustee. This encapsulates the autonomy of the company and the division between entity and members. Nor are the subscribers, as members, liable in any way except to...