Taylor Wessing updates

Can the terms of a settlement agreement be challenged under Section 127 of the Insolvency Act 1986?
Taylor Wessing
  • Insolvency & Restructuring
  • United Kingdom
  • November 24 2017

In between the presentation of a winding-up petition and the making of a winding-up order, a company entered into a settlement agreement with its founder. The judge concluded that the intended claims by the company's liquidators were not barred by the agreement. The judge also held that the release of contractual rights constituted a disposition, as did a promise not to sue. The provisions of the settlement agreement were therefore void.

Application by Lehman's administrators on distribution to shareholders
Taylor Wessing
  • Insolvency & Restructuring
  • United Kingdom
  • November 17 2017

The administrators of Lehman Brothers Europe Ltd recently brought an application for directions on whether to make a substantial distribution of surplus to the company's sole shareholder while the company was in administration and the administrators' role in that distribution. To navigate around the Insolvency Act, the administrators devised a nifty strategy whereby the distribution would be made using the residual powers still vested in the directors and shareholders of the company pursuant to the Companies Act.

Legal professional privilege and bankruptcy
Taylor Wessing
  • Insolvency & Restructuring
  • United Kingdom
  • November 03 2017

A court recently confirmed that legal professional privilege does not automatically vest in the trustee in bankruptcy. Legal professional privilege is a fundamental human right such that express statutory powers would be necessary to deprive the bankrupt of that right. Therefore, the bankrupt would need to waive privilege or consent to the use of privileged documents.

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