Supreme Court upholds CoA Lehman ruling using 200-year-old insolvency law

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  • As I understand it, using a contract to deprive creditors of an asset that the company has just before the onset of insolvency is something that will not be upheld by the courts.
    This decision proves it. Is it time that the rest of the world followed suit in adopting the UK's framework for insolvency? Time will tell.
    Head of Immigration
    4A LAW

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  • Vijesna - such contracts CAN be upheld by the courts in certain circumstances; for example, if there is no intention to contravene insolvency laws (i.e. good faith) and the transaction is commercially sensible. That is what this decision shows. Given the conflict with the US Bankcruptcy Court's view on anti-deprivation clauses, it sounds like you would probably prefer Judge Peck's narrower take on the issue over the UK stance..

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  • Not enough about football in the speeches is there, Adrian?!

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