Blockchain is a new technology that is based on an algorithm which allows participants of an IT network to process, store and share data across multiple points without the need for any intermediary, ...at least in order to ensure the integrity of the data dealt with. This technology is simplifying financial markets—many organizations are launching initial coin offerings to facilitate the financing of new business ventures; moreover, ‘securities’ that are issued in such a digital form can be bought and sold in the secondary market without the intervention of the traditional intermediaries. However, this use of blockchain could give rise to many problems which, in this article, will be analysed from the prospective of insolvency law. This paper will argue: first, that these problems originate from the fact that the issuance of blockchain securities is creating a divide between the world where securities are issued, offered and sold, and the world where law is enforceable; secondly, that these problems cannot be managed easily because of the lack of an apt point of attack, rather than because of the claim that the principle of technological neutrality should be observed; thirdly, that—under certain conditions—the sandbox approach that is being adopted by the UK financial conduct authority could contribute to directly shaping the platforms in pursuit of regulatory goals.
It was Lord Hoffmann who once spoke of a "golden thread" of modified universalism running throughout English Insolvency Law since the eighteenth century. However, after the UK Supreme Court's ...decision in Rubin v Eurofinance SA, that golden thread seems to have lost its lustre. This paper critiques the main premise of the Rubin decision by questioning whether the Supreme Court was correct in holding that there can be no separate sui generis rule for recognising and enforcing foreign insolvency judgments. This article also explores the possible solutions, either through statute or the common law, that could be used to remedy the post-Rubin legal lacuna for recognising and enforcing foreign insolvency judgments.
Una de las novedades de la Ley 20.720, de reorganización y liquidación de activos de empresas y personas, consiste en la identificación de un número de créditos que, por diversos motivos, resultan ...degradados en sus posibilidades de pago, bajo la lógica de la posposición legal. El presente trabajo tiene por objeto conceder una primera mirada a esta regulación, a fin de identificar las razones para dicha opción legislativa, diferenciándola de la subordinación voluntaria prevista en el artículo 2489 CC, al tiempo que se pretende enmarcarlas en el elenco de normas que componen las reglas de prelación de créditos y explorar su lógica y características en el contexto de nuestro sistema concursal.
The author examines whether the concept presented by the CJEU in its
Kornhaas
judgment of 2015 may also find application when seeking the personal liability of the members (shareholders) of an EU ...foreign company having its COMI in Germany. The background against which the following article considers this question is the legal concept of
Existenzvernichtungshaftung
—the personal liability of GmbH shareholders for ruining a company—as developed by the German Supreme Court of Justice. The author discusses the CJEU’s judgment in the
Kornhaas
case and its background and consequences, as well as briefly discusses separate corporate identity and its limitations, including theories of disregarding the autonomy of a corporation and its variation of
Existenzvernichtungshaftung
. On the basis of that analysis the author examines both the question of whether
Existenzvernichtungshaftung
is covered by
lex fori concursus
under the EIR and that of whether its application constitutes a restriction on the freedom of establishment under the rules developed in
Kornhaas
. In conclusion, the author analyzes the possible legal consequences of the views presented in this paper.
Materials are a critical element within the construction industry yet- the conditions and legality surrounding their ownership remains an area of uncertainty. The difficulty in ascertaining ownership ...is often found in the instances of payment, delivery and complex contractual relationships. Additionally, the nature of the construction industry whereby raw materials are purchased within a supply chain and are incorporated into the fabric of buildings or goods often creates further confusion. The importance of ownership is most apparent in the instance of disputes or insolvencies, both of which are regular occurrences within the construction industry and in the management of a project regarding cash flow and programme. To inform the position and stance of Scots Law in relation to ownership of materials it is necessary to evaluate current law regarding ownership of materials in Scotland through the undertaking of a literature review which establishes the prevailing legal structure. Conclusions and recommendations propose that parties of a construction contract, for which Scots Law is applicable, are aware of current law surrounding the intricate matter regarding ownership of materials in Scots Law
Bad debt and green issues Brown, Lloyd A.
Environmental law review,
09/2018, Volume:
20, Issue:
3
Journal Article
This article uses interview data, collected from ‘elite’ banking respondents, to examine how secured lenders use insolvency practitioners as a form of post-loan due diligence. It is concerned with ...how effective insolvency practitioners are at obviating the risks that may be incurred where insolvency proceedings are caused or impeded by environment-related issues. It shows how the unique relationship between lenders and insolvency practitioners greatly reduces the likelihood of direct liability from environmental regulations transferring to the lender during the liquidation process. Two regimes are analysed in this article: the contaminated land regime, and the waste licensing system. Statutory provisions and judicial decisions have limited the power of environmental regulators. At the same time, however, this is good for secured lenders who are principally concerned with repaying the debt that is owed to them by a defaulting borrower. A more significant concern for lenders during borrowers’ insolvencies are the indirect risks (that is, credit and security risks). Environmental issues arising during a borrower’s insolvency may reduce the likelihood of the lender being repaid and, in the case of contaminated land, could severely limit the lender’s ability to exercise its security.
Das Insolvenzrecht gehört zu dem Kernbestand der Regelwerke, die das Vertrauen der Rechtsgenossen in eine Rechtsordnung sichern. Es regelt die Bedingungen allseitiger Haftung eines Schuldners und ...steckt damit zugleich den Rahmen ab, innerhalb dessen die Gläubiger erwarten können, dass ihre Rechte in einer und durch eine Reorganisation und Sanierung des schuldnerischen Unternehmens gewahrt werden. Die faktische Wirkung des Insolvenzrechts endet nicht an nationalstaatlichen Grenzen. Das Insolvenzverfahren ist nach seinem Anspruch auf universelle Geltung angelegt. In fast allen Mitgliedstaaten der Europäischen Union gilt heute als innerstaatliches Recht ein gemeinsames Recht grenzüberschreitender Insolvenzverfahren. Dieses gemeinsame europäische Recht strahlt auf die innerstaatlichen Reformbemühungen aus - es hat Einfluss auf die Insolvenzgesetzgebung. Die innerstaatlichen Gesetzgebungen werden zudem von UNCITRAL-Modellgesetzgebungen beeinflusst. Die wissenschaftliche Diskussion geht zusehends auf die damit ausgelösten Konvergenzbewegungen ein; die Praxis bedarf rechtsdogmatischer Aufklärung über die komplexer werdenden Regelungen des Insolvenzrechts und der Unterrichtung über die Strukturen und Problemstellungen ausländischer europäischer und außereuropäischer Insolvenzrechte, auch und gerade in ihrer Wechselwirkung mit dem deutschen Recht. Die Schriftenreihe der DZWIR ist ein Forum dieser Diskussionen. Sie wird in loser Folge monographische Untersuchungen zu Grundsatzfragen des deutschen, europäischen und internationalen Insolvenzrechts veröffentlichen. Damit leistet diese Schriftenreihe einen Beitrag ebenso zur rechtsdogmatischen Klärung von Streitfragen wie nicht minder zur Unterstützung der europäischen Integration der nationalstaatlichen Insolvenzrechte.
This article argues for updating and reform of the liquidation duty under Chinese corporate law. It adopts an evolutionary perspective on corporate law in the sense of asking whether the corporate ...laws co-evolve with, and adapt to the changing conditions of a country, rather than whether laws are converging towards a certain 'developed' model. In some jurisdictions, directors have a creditor-regarding duty when the company is insolvent or near insolvency and this duty is intended to constrain 'moral hazard' issues on the part of corporate insiders. In China, such moral hazard issues are mitigated by the liquidation duty. This article argues that while the liquidation duty is relatively effective, it has created unfairness and undermined the value of formal insolvency law. Drawing on the experience of other jurisdictions especially the United Kingdom in relation to wrongful trading law, this article suggests that a wrongful trading remedy and further restructuring measures might be introduced in China.
Two events are currently changing the landscape for business restructurings in the European Union: the ‘Restructuring Recommendation’ (RR) of the European Commission, issued in 2014, and the 2015 ...recast of the European Insolvency Regulation (EIR). In this paper, we critically review the RR and put it into the context of the reform of the EIR. We find that the recast EIR and the RR do not dovetail perfectly—a restructuring proceeding as proposed by the RR would not necessarily be within the scope of the recast EIR; we also suggest that, in any case, the EIR is not optimally designed to facilitate restructurings, given its treatment of secured creditors. Regarding the regulatory approach pursued in the RR, the Commission rightly pushes towards harmonisation with respect to Member States’ restructuring regimes—regulatory competition is not a sensible regulatory alternative in this area. However, we criticise both the methodology and scope of the harmonisation proposal of the RR: sketchy minimum harmonisation of restructuring rules leaves huge potential for residual diversity in Member States’ restructuring laws, and the Commission’s narrow focus on restructuring proceedings ignores several aspects of the complicated interaction between the Member States’ formal insolvency laws and the restructuring mechanism proposed. Further, we disagree with the substantive recommendations for Member States’ restructuring laws suggested by the RR: they wrongly require financial difficulties or a likelihood of insolvency as an entry test for the recommended restructuring proceeding, and the process appears susceptible to abuse by sophisticated financial investors—it does not provide for the mandatory appointment of a supervisor and allows significant curtailments of creditor rights without sufficient safeguards in place. Instead, we propose an efficient debtor-in-possession (DIP) regime as an alternative that could be initiated regardless of a firm’s solvency, provided that it is economically viable and that the filing is not abusive.
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