Elvinger Hoss Prussen’s Post

The latest edition of our Insolvency Newsletter is out now! In this edition our Insolvency team looks at some recent cross border and personal insolvency decisions, from some jurisdictional challenges in bankruptcy petitions to proposed update in relation to United Nations Commission on International Trade Law. Read here: https://bit.ly/3t5fUQQ

Some more fundamental thoughts about the new Luxembourg restructuring law. The law of 7 August 2023 is certainly a paradigm shift and will require lawyers and judges alike to change their habits and reflexes regarding distressed companies. The speed with which the law was enacted also means that the legal professions are not as prepared as they should have been. The next months will show whether the law will become a success (in that it will be used in practice with the intended effect of ensuring business continuity of distressed debtors) and whether the courts have the necessary resources to deal with the additional foreseeable workload. #restructuring #insolvency #lawandtax #luxembourg

𝐅𝐮𝐧𝐝𝐚𝐦𝐞𝐧𝐭𝐚𝐥 𝐜𝐡𝐚𝐧𝐠𝐞 𝐢𝐧 𝐭𝐡𝐞 𝐢𝐧𝐬𝐨𝐥𝐯𝐞𝐧𝐜𝐲 𝐥𝐚𝐧𝐝𝐬𝐜𝐚𝐩𝐞 The new Luxembourg Restructuring Toolbox fundamentally alters the existing insolvency law landscape. It replaces the existing, albeit largely unused, alternatives to bankruptcy proceedings with the new judicial and extrajudicial tools. It remains to be seen whether the new restructuring tools will be used more eagerly by the courts and practitioners who previously tended to turn to bankruptcy as a default solution. Indeed, it was considered that bankruptcy offered better guarantees to creditors than the alternative solutions of controlled management and composition with creditors. The courts now retain the power to switch from judicial reorganisation proceedings to a bankruptcy if the debtor is manifestly unable to maintain business continuity or, as a sanction, if the debtor gives incomplete or incorrect information to the court. The courts may also refuse to ratify a reorganisation plan, but only in limited circumstances, notably if the plan is contrary to public order or does not offer a “reasonable perspective” to avoid the insolvency of the debtor. It remains to be seen how the courts and insolvency practitioners will react in practice to some of the fundamental changes which profoundly challenge the way Luxembourg law has looked at insolvency and restructuring for over a century. #lawandtax #luxembourg #insolvency #restructuring #law

“What is an Insolvency Proceeding?” By Dr Riz Mokal (Barrister at South Square and Honorary Research Fellow at School of Law, University of Aberdeen). Check out this new article published on the Singapore Global Restructuring Initiative (SGRI) Blog! #insolvency #restructuring #foreing #proceeding #collective #financialdistress #creditors #UNCITRAL https://lnkd.in/gkhanYXD

Singapore provides mechanisms to protect creditors by reversing vulnerable transactions that occur before insolvency. These provisions seek to ensure that transactions detrimental to creditors can be effectively challenged and set aside, and provide creditors with confidence that their interests are protected in the judicial management or insolvency of a company. This article briefly summarises the circumstances in which vulnerable transactions can be unwound for companies subject to Singapore’s insolvency laws.

Article on cross-border insolvency in China The article “CONTEMPORARY ISSUES OF CHINA'S CROSS-BORDER INSOLVENCY LAW FROM THE PERSPECTIVE OF THE UNCITRAL MODEL LAW”, written by Professor Hongyou Sun, is available on the website of Victoria University of Wellington. For more details: https://lnkd.in/eeam7sWK #crossborderinsolvency #UNCITRAL #crossborderdebtrecoveryblog

Look Chan Ho was ranked by Chambers and Partners Greater China Region 2024 as Up and Coming in the field of Commercial Dispute Resolution. Chambers Review shared that "Ho Look-Chan stands out for his close focus on insolvency issues, and in-depth expertise concerning them, a field to which he brings both the technical knowledge of a published authority on the subject and the practical insights derived from having practised as a solicitor in the area for over 15 years." Clients commented that "Look-Chan has good experience knowing what judges think in terms of precedents. He has strong knowledge of restructuring and the law around it; it's very complicated and he handles it very well.", "He really does know insolvency.", "Look is an expert in cross-border insolvency and restructuring law. He is renowned in Hong Kong and abroad in this field." and "Look is exceptionally intelligent and knowledgeable in relation to company and insolvency matters. He works incredibly hard and is very responsive." #DVC #DesVoeuxChambers #accolades #chambersandpartners #commercialdisputes #disputeresolution #insolvency #restructuring #commerciallitigation #companylaw

The adoption of CIGA 2020 indicated a shift towards a new era in UK corporate insolvency law. In his most recent article, Graduate Editor Jakub Kozlowski explores the emerging similarities between the UK and U.S. bankruptcy regimes and concerns accompanying the new system. Read here: https://lnkd.in/e3Xm5qQ2