Insolvency law & restructuring

Recent Articles

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  27/11/2024

  United Kingdom

  The CJC Review of Pre-Action Protocols – Phase Two Report (Final) now published

  On 15 November 2021, the UK's Civil Justice Council (CJC) published an Interim Report initiating a consultation on pre-action protocols (PAPs).  The consultation closed in January 2022. CMS responded to the consultation with interest, given the potential impact on the legal industry and insurers/insureds alike.It is the responsibility of the CJC, through its designated Working Group (WG), to make recommendations to the Civil Procedure Rules Committee (CPRC). It is for the CPRC to accept or reject those recommendations and draft the revised PAPs.The CJC's response was published in two parts....

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  27/11/2024

  Germany

  When is the hearing closed? – The Bavarian Highest Regional Court rules on the preclusion of objections against the execution of an arbitral award under Sec. 767(2) ZPO

  In a decision of 24 July 2024, the Bavarian Highest Regional Court (BayObLG) rejected an objection against the execution of an arbitral award because the applicant could have raised the objection in previous proceedings on the declaration of the arbitral award’s enforceability. Referring to an obiter dictum of the German Federal Supreme Court (BGH), the BayOblG held that the relevant threshold derives from the provision governing objections against the execution of state court judgments.I. Facts of the CaseThe proceedings before the BayOblG concerned the execution of an arbitral award rendered...

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  22/11/2024

  Ukraine

  How Ukraine’s banking sector tackles NPLs during wartime

  Ukraine’s banking system is facing significant challenges because of the ongoing war, yet it has shown remarkable resilience and flexibility. The following analysis outlines the impact of the war on loan performance, economic growth, and the banking system in general, highlighting trends in non-performing loans (NPLs), lending activity, and reforms that are expected in Ukraine in the near future.Impact of war on NPLsUkraine had experienced a consistent decline in NPLs since 2018, signaling improvements in the health of its financial sector. The war, however, disrupted this progress, introducing...

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  03/10/2024

  England and Wales

  Sanctioned creditors allowed to participate in and vote at creditors’ committee meetings

  In Hellard v Rossiysky Kredit Bank [2024] EWHC 1783 (Ch) the High Court confirmed that insolvency practitioners can accept votes of sanctioned creditors in relation to creditor decisions and allow them to take part in creditors’ committee meetings. Hellard also adds to the growing case law dealing with the meaning of control under the Russia (Sanctions) (EU Exit) Regulations 2019 (the “Russia Regulations”).BackgroundMr Motylev, a Russian national, moved to London in 2015 following the collapse of his Russian banking and pensions business. He was declared bankrupt in Russia...

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  01/10/2024

  Germany

  NPLs in German commercial real estate countered by regulation and changing economic conditions

  The financing of commercial real estate in Germany is currently under strain. The increase in non-performing loans (NPLs) in the commercial real estate sector is enormous and is putting both borrowers and financiers at risk. Regulation and supervision by national and European authorities, however, are playing a decisive role in overcoming the NPL problem along with changing economic conditions. In this article, the third in a series, we explore the rise of NPLs in German commercial real estate, the impact of this on the markets, and the response by regulators at the national and EU level.BackgroundNPLs...

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  25/09/2024

  Germany

  Germany’s new secondary credit market act designed to increase acquisition of NPLs

  The business landscape in Germany is facing a major challenge: insolvencies and defaults on loans are on the rise. But where there are risks, there are also opportunities. The increase in non-performing loans (NPLs) is opening and creating an exciting playing field for investors. With the new German Secondary Credit Market Act (KrZwMG), the legislature wants to create an efficient market to reduce the high number of NPLs. In this article, the second in a series on NPLs in Germany, we look at current trends, risks and opportunities relating to NPL transactions.Non-performing loans and corporate...

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