As the COVID-19 pandemic continues to unfold across the country, voluntary self-isolation efforts and a proliferation of state and local “shelter-in-place” orders have brought business activity to a screeching halt.  As business leaders work feverishly to consider the options available to safeguard their companies, we recommend that they keep in mind the three C’s: Care,…

These are just a few of the big high street names which have sought to compromise their obligations to creditors in recent months via a company voluntary arrangement (CVA).

CVAs are designed as a flexible method by which companies can seek to contractually alter their position regarding different creditors – each CVA will be different,…

A new wave of CVAs?

A company voluntary arrangement (CVA) is, provided the voting thresholds are met, a binding agreement made between a company and its creditors, designed to compromise a company’s obligations to its creditors.

As retailers and restaurateurs across the UK continue to show signs of financial distress, interest in the use of…

Reed Smith recently released a client alert regarding a decision this week, in which the English High Court has clarified the extent of a third party secured creditor’s duties, when put on notice of a freezing order, and suggested a more limited duty than that previously articulated by the court. Notwithstanding this, the position remains…

The Pension Protection Fund (“PPF”) has updated its approach to employer restructuring guidance and its general guidance for restructuring and insolvency professionals. These documents set out certain criteria that should be met when making proposals to the PPF in respect of a sponsoring employer suffering an insolvency event.

1. The PPF Approach to Employer Restructuring:…

Reed Smith’s global Commercial Restructuring & Bankruptcy team have recently published the May issue of their quarterly newsletter. The newsletter provides a detailed review of some of the most important legal developments in the sector.  The May issue includes the following:

• How Safe are the Bankruptcy Code Safe Harbors?
• Stockton’s Chapter 9 Plan Approval
• Delaware

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Singularis Holdings Limited v PricewaterhouseCoopers [2014] UKPC 36

PricewaterhouseCoopers v Saad Investments Company Limited [2014] UKPC 35

The Privy Council gives credence to the concept of “modified universalism” (being the court’s common law power to assist foreign winding up proceedings) and notes some of the circumstances which would permit a “stranger” to a winding up…