Welcome to the 21st edition of DLA Piper’s Restructuring Global Insight.
In this edition, we start by looking at two highly regulated sectors: healthcare and consumer credit. Tom Califano and Rachel Nanes examine the prevalence and potential impact of claims against American healthcare providers under the False Claims Act. The article considers the limitations that may arise when distressed healthcare companies, faced with such claims, seek bankruptcy relief in order to continue trading. Across the Pond, David Ampaw and Jared Green note current, record levels of consumer credit in the UK. Regulation has increased, wages have stagnated and interest rates seem likely to rise. David and Jared analyze the particular challenges for insolvency practitioners appointed to restructure a consumer credit business.
Pre-packaged business transfers have become commonplace in many jurisdictions. It is interesting to note, therefore, that whilst Singapore was introducing a new pre-packaged scheme of arrangement, Belgium was making a positive decision to withdraw proposals to facilitate pre-packaged sales. Charlotte Sas, from our Brussels office, explains why.
And last but not least, Amelia Kelly and colleagues from our Sydney office consider the opportunities and uncertainties surrounding recent Australian reforms enabling liquidators to sell their office-holder claims, including those connected with voidable transactions and insolvent trading. This item is likely to be of particular interest to UK readers, where similar reforms were introduced two years ago, opening up the market for litigation funders and creating interesting dynamics for the courts and regulators to consider.
We hope you enjoy reading these pieces. As ever, please do reach out to any of the authors if you would like to know more.