In regard to most contractual relations, the estate may choose whether to assume the position of the debtor in non-performed contracts. This right to choose is limited to the estate and the co-contractor cannot reject the estate's performance of contracts. However, some agreements are of such nature that the estate cannot force the co-contractor to accept it as a contractual party.
Includes: Insolvency and Restructuring Processes; Effect on Creditors' Rights; Effect on Management of Debtor Company; Key Players; Financial Information; Funding and Priority for New Money; Ranking of Creditors; Voidable Preferences; 'Cram-Downs'; Cross-Border Insolvency Issues.
In order to secure funds to conduct proper bankruptcy proceedings, the Parliament has approved a new provision in the Pledge Act providing bankruptcy estates with a statutory lien on 5% of all pledged assets. The new statutory lien also applies to assets that are mortgaged by a third party as security for the debt of the debtor.
Legislation provides that a concession for the breeding of fish or shellfish will be nullified following the bankruptcy of the concessionaire. However, a draft proposal provides that the bankrupt estate may obtain a temporary concession and the new owner will be entitled to a new concession. The concession thus becomes an asset which can be realized by a bankruptcy estate.
The Supreme Court recently decided that the Norwegian courts had jurisdiction in a bankruptcy petition filed against a Norwegian citizen who had been living abroad for 13 years. The fact that the creditor took reasonable measures to trace the debtor's place of residence, but failed, proved decisive.
Several limitations in the Copyright Act prevent creditors from claiming an interest in the IP rights of debtors. However, the restrictions only apply to the IP right itself, so creditors remain free to seek satisfaction from any proceeds derived from the right.
Different types of unsecured claims have been given different priority by statute. This update emphasizes the usefulness of written agreements in determining a loan's status in the event of a bankruptcy.
Insolvent debtors are often under statutory duty to file a petition, either for bankruptcy or another type of insolvency proceeding. This article describes the debtor's duty to act and how a failure to act may result in financial liability for the company's directors.
According to Section 135 of the Bankruptcy Act bankruptcy proceedings may be suspended due to lack of funds to pay the costs associated with these proceedings. However, it is quite usual for bankruptcy estates to run out of funds because all the debtor's assets have been mortgaged. A draft proposal should help to resolve this situation.
Including: Applicable Laws; Non-Judicial Reorganization and Liquidation; Jurisdiction over Bankruptcy; Types of Judicial Insolvency Proceedings; The Consequences of Insolvency Proceedings; Creditors and Claims; Estate Administration; Trustees' Avoiding Powers; Concluding Bankruptcy Proceedings
The Bankruptcy Act and the Creditors Recovery Act were amended in January 2000. Most of the changes relate to foreign creditors and which courts should have jurisdiction over them.
The rules relating to sales lien have been amended so that certain types of assets will not be subject to sales lien. This update discusses which assets will be affected under the amended law.