26a: Winner of the Orange Award for New Writers

Product Information

The relevant provisions were debated at length in the House of Lords and some amendments made. As a result, it is now clear that lenders can accelerate loans in the moratorium if they have the contractual right to do so, but the drafting of the relevant provisions in the Act mean that “relevant accelerated debt” will not be a “priority pre-moratorium debt” for the purposes of super priority in a subsequent insolvency or restructuring procedure. Section 39 of the Act concerns the filing of certain documents with the registrar at Companies House. The Act provides the Secretary of State with the power to make regulations to extend the time period which a company or other entity has to provide the registrar with these filings (and these regulations have now been made). Maximum time periods which may be substituted for the existing periods for those filings are specified and Section 40 lists the provisions in the Companies Act 2006 and other legislation that relate to the particular filings and allows for certain deadlines to be extended. These deadlines include the periods for filing accounts and confirmation statements. They also include the time allowed to notify the registrar of certain relevant events that are covered by the confirmation statement, such as notifying the registrar of a change in director. In addition, the deadline for registering a charge with Companies House has been extended. Section 39 expired at the end of the day on April 5, 2021. Chambers does not have a time limit for bringing complaints under its complaints policy to be processed within the complaints procedure at Guildhall. However the LeO does have time limits for bringing a complaint, which is ordinarily (if the complaint arises from an act or omission after 5 October 2010) six years from the act/omission which is the subject of the complaint and/or three years from when the complainant should reasonably have known that there was cause for complaint. In and following the COVID Period, it will be a useful tool to add to the restructuring tool box where there is a need to treat different classes of creditors in different ways, and seek to compromise the claims of secured creditors, unsecured creditors and members.

Clinical negligence and personal injury work is most often charged (or calculated) on the basis of an hourly rate. The section 201(1) of Income Tax Act, 1961 talks about when assesse is not treated as assesse in default. That is, when he had complied certain conditions and furnished the Form 26A. Let’s see what this form is and how it is furnished. He/she must monitor the company’s affairs for the purpose of forming a view as to whether it remains likely that the moratorium will result in the rescue of the company as a going concern. He/she is entitled to rely on information provided by the company during the moratorium unless he/she has reason to doubt its accuracy. Our barristers act in criminal work for the Crown Prosecution Service (hereafter ‘CPS’) and other prosecuting agencies, as well as for Defendants, at all stages in the criminal justice process.In addition to these new procedures, the Act introduces a number of temporary measures intended to assist in reducing the number of companies entering into restructuring or insolvency procedures and to mitigate the effect of the insolvency regime on the responsibilities of directors whose businesses are struggling due to the COVID-19 crisis. The Act also includes extensive powers for the Secretary of State to amend certain provisions, recognising that this is a complex piece of legislation which has been implemented on an accelerated basis and that there will inevitably need to be some adjustments to deal with issues arising in practice as the Act begins to be used. As a result of these provisions, more companies are likely to survive or be sold as going concerns thus ensuring better realisations for the creditors of the company. However, as drafted, the provisions may be viewed as unwelcome by some suppliers; particularly where this could prevent them from making claims against others, for example, guarantors.

However, despite Simon Passfield’s “able submissions”, Leech J did not consider that the Plan was unfair to Mr Smith or Mr Henson (see paras [120]-[121]). DeepOcean Group (the “Group”), a sub-sea services provider, proposed a restructuring plan for three Companies within the group – DeepOcean 1 UK Limited, DeepOcean Subsea Cables Limited and Enshore Subsea Limited (together, the “Companies”), all of which are incorporated in the UK. The Companies had underperformed for a number of years, due to unfavourable economic conditions, changes in the market and more recently the COVID-19 pandemic and required funding from the Group to continue as a going concern. The Group had decided not to provide further funding, making the operations of the Companies unsustainable. Non-UK resident for the previous tax year, UK resident for the tax year before that and non-UK resident for the 3 tax years before that. Nasmyth Group Limited (“ the Company”) is the holding company for a group of subsidiaries which provide specialist precision engineering services to the aerospace, defence and related industries (together, “ the Group”).Allow Accountants so authorized to view Annexure A to Form 26A on the basis of DIN and/or Alpha-Numeric String; complete the Annexure; and submit it by digitally signing it. Although Part 26A of the Act was focused in part on enhancing the ability of a Company to carry on business as a going concern, there was no reason to consider that this was the only purpose for which relief could be granted. The Court pointed to Section 901C(2)(c) of the Act which enables a liquidator to initiate a restructuring plan.

It will be possible for a company to apply for a new free standing moratorium whilst negotiating a Restructuring Plan with its creditors, if it fulfils the criteria in the Act to make such an application, but in that case there are restrictions on the ability of the company to bind relevant creditors in the Restructuring Plan. The court also has the power to force a class of creditors to agree to the terms of the Part 26A Plan, even if the class has not obtained 75% support. This is called a cross-class cram-down. The court can exercise this power if:

Temporary suspension of the wrongful trading provisions in Section 214 IA 1986

Pursuant to other statutes including the duty to act in the best interests of creditors when a company is insolvent in accordance with Section 172 Companies Act 2006 as interpreted in the recent decision in BIT v Sequana 2019 EWAC Civ 112. The deductor has to go to the TRACES portal and submit a request for Form 26A. Further, deductor needs to enter the details of non-deduction transaction.