Cross Border Restructuring and Insolvency Update - 30 November 2017

High Court Recognises Application Under The Cross-Border Insolvency Regulations: Croatian Proceedings of a Single Company Subject to Group Insolvency Proceedings

An application was made for recognition in Great Britain under the Cross-Border Insolvency Regulations 2006 ("CBIR") of a company subject to new legislation in Croatia known as "Extraordinary Administration Proceeding".

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Orexim Trading Ltd v Mahavir Port and Terminal Private Ltd and others [2017] EWHC 2663 (Comm)

In Orexim Trading Ltd v Mahavir Port and Terminal Private Ltd and others [2017] EWHC 2663 (Comm), the High Court held that a claim under s.423 of the Insolvency Act 1986 ("IA 1986") where it was not brought by an insolvent company within the jursdiction did not fall within the jurisdictional gateways under paragraph 3.1 CPR PD 6B.

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Short stories

Canadian Insolvency Legislation Amended to Better Protect Pensioners and Employees

A private member's bill, Bill C-372, was introduced on 17 October 2017 with proposed amendments to the Bankruptcy and Insolvency Act and the Companies Creditors’ Arrangement Act. The Bill seeks to protect retired workers whose pensions and group insurance plans are at risk if their previous employer goes bankrupt or undergoes restructuring. The Bill would provide for priority status for claims in respect of underfunded pension plans, as well as claims arising as a result of an employer terminating its participation in a group insurance plan. Whilst it is not clear whether this Bill will become law, it is hoped that it will allow pensions to be able to be accessed.

UK: Further amendments to the Insolvency Rules 2016 coming into effect on 8 December 2017

The Insolvency (Miscellaneous Amendments) Regulations 2017 and the Insolvency (England and Wales) and Insolvency (Scotland) (Miscellaneous and Consequential Amendments) Rules 2017 will come into force on 8 December 2017.

These regulations bring limited liability partnerships into the ambit of the New Rules correcting an omission when the Rules were introduced in April 2017, and make other corrective and minor changes to the Rules and other insolvency legislation.

EasyJet €40m deal with Air Berlin

EasyJet has confirmed a €40 million deal with Air Berlin to buy part of the insolvent German airline's operations, securing 1,000 jobs. The deal will include assets held at Berlin Tegel Airport, including landing slots and leases for up to 25 aircraft.

Air Berlin went into an insolvency process in August after its biggest shareholder, Etihad, announced it would no longer provide financial support.

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