Restructuring Global Insight - April 2017

Restructuring e-Newsletter - Global Insight Series

DLA Piper's Global Insight is a digital publication bringing you news, views and analysis from our Global Restructuring Group.

The speed with which Narendra Modi's government in India has introduced not only its new Insolvency and Bankruptcy Code 2016 but also the infrastructure to support it demonstrates its appreciation of the importance of effective insolvency and restructuring regimes to attract inward investment. During DLA Piper's recent visits to India we were impressed by the commitment, energy and optimism of those engaged in this fast-moving process to make real and significant change. We shall write about the implementation of the reforms in India in future editions, as will our partners in the UAE regarding the implementation of the new UAE bankruptcy law. Whilst the implementation of these new laws starts to take shape, we concentrate in this edition on important developments in more established regimes; USA, England, France, Germany and Australia.

In this issue

  • Recent SDNY decision protects and clarifies investment banker compensation in bankruptcy
    3 APR 2017

    Recently in the Relativity Media Chapter 11 case in the Southern District of New York, Bankruptcy Judge Michael E. Wiles definitively shot down challenges brought by the fee examiner Robert Keach and Relativity Secured Lender LLC (together with the reorganized debtor) to transaction fees earned by Houlihan Lokey Capital, Inc. and PJT Partners.

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  • Schemes of arrangement: splitting debts to sanction?
    3 APR 2017

    In the first case of its kind, the High Court in England has prevented a shareholder from splitting its shareholding in an attempt to defeat the approval of a scheme of arrangement under section 895 of the Companies Act 2006 by way of manipulation of legislative requirements in relation to Schemes which require approval by a majority in number representing 75% in value of the voting class of shareholders.

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  • France embraces security trustee arrangements
    3 APR 2017

    France's Sapin II Act was introduced last year to bring France into line with the highest international standards of transparency, in the fight against corruption and to guarantee more effective financing of the economy. A notable development for the finance world, is that the Act has empowered the government to take steps to clarify and modernize the status of the French security agent.

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  • Insolvency-proof liquidation netting strengthened and broadened in Germany
    3 APR 2017

    A decision of the German Federal Court of Justice in June 2016 regarding the validity of liquidation netting agreements sparked widespread fear of a new banking crisis. It led to immediate action by the BaFin (German Federal Financial Supervisory Authority) and, only a few months later, amendment of the relevant statute by the German legislator.

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  • "Loan to own" strategies in Australia
    3 APR 2017

    The increase in the availability of alternate capital in Australia over the past decade has provided a landscape for well-tested global restructuring techniques to be applied locally. This includes 'loan to own' strategies. More recently in Australia, two key factors are driving the opportunities for the implementation of 'loan to own' structures: first, the continuing flow of non-bank capital into the Australian market from abroad; and secondly, the willingness of existing holders of debt to trade, not least because Australian banks are subject to some of the toughest regulatory capital constraints globally.

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