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Insolvency News and Update - January 2018

News

Further woes for another fintech unicorn

The Administrators of Ve Interactive, a fintech "unicorn" (i.e. a company with a pre-revenue valuation of $1bn) which collapsed in 2017, are considering pursuing claims against the company's former directors. Two of these directors were made bankrupt in December 2017 following the company's collapse, with a freezing order placed on their assets.

Ashfords' Take: The news follows hot on the heels of another high-profile unicorn collapse - that of Dan Wagner's Powa Technologies. Ashfords successfully opposed an application to set aside a statutory demand as part of the fallout of this matter - read more about it here.

Byron Burger proposes a CVA

UK burger restaurant chain, Byron Burger, has proposed a company voluntary arrangement (CVA) with its creditors in a bid to restructure the company's finances and rescue the business.

The creditor vote is due to take place on 31 January, with the CVA requiring at least 75% creditor consent for approval. The company is understood to be in talks with creditors and the proposed CVA is thought to be centred around the closure of underperforming restaurants and rent reductions at other branches.

After a period of rapid expansion, the burger chain has been struggling with rises in inflation and the popularity of food delivery companies.

Ashfords' Take: Another well-known UK brand falls victim to the rise in rental costs and the popularity of online ordering.

Recent cases

Willmont & ors v Shlosberg [2017] EWHC 2446 (Ch), Arnold J, 9 October 2017

The latest decision in the Shlosberg saga that has turned the issue of privilege and use of documents on its head - this time considering the practical implications of how office holders can use information they have obtained by compulsion for the purposes of their investigations.

Click here to read more

Stevensdrake Limited (trading as Stevensdrake Solicitors) -v- Hunt [2017] EWCA Civ 1173 CA

Stevensdrake Limited, a law firm, made a claim against a Liquidator for fees owing under a Conditional Fee Agreement (CFA) made between the two on 10 April 2008. The parties had worked together on various insolvency matters for many years.

Click here to read more