Rehabilitation Act Effective in Estonia

By Johanna Korhonen
Advokaadibüroo Aivar Pilv, Estonia

The Rehabilitation Act that enables reorganization of enterprises pursuant to law took effect on 26 December 2008. Until then the insolvent enterprises tried to solve their economic problems by negotiating with the creditors or by commencing bankruptcy proceedings.

This act is significant to all foreign business operators who have economic interests in Estonia. In addition to the fact that an enterprise based on foreign capital may submit an application to the Estonian court of its location in order to initiate rehabilitation proceedings, the foreign creditor of the reorganized Estonian enterprise has to participate actively in the proceeding in order to ensure the claim.

Read more: Rehabilitation Act Effective in Estonia

Unsecured Creditors May Collect Post-Petition Attorneys’ Fees But Undersecured Creditors May Not

Author: Paul A. Rubin
Herrick, Feinstein LLP, New York, New York, USA

The Second Circuit Court of Appeals has just held that an unsecured creditor in a bankruptcy case is entitled to recover, as part of its pre-petition claim, attorneys' fees it incurred post-petition pursuant to a pre-petition contract with the debtor. But an undersecured creditor—whose claim exceeds the value of its collateral—is not permitted to collect such fees. Click here to read the entire alert.

Recent Cases Show Potential of Cross-Border Insolvency

By Glen Ryan, Duncan Cotterill, New Zealand

The Insolvency (Cross-Border) Act 2006, which adopts the UNCITRAL Model Law on cross border insolvency, has taken some time to have any apparent application in New Zealand. But two cases have been decided in as many months, both resulting in recognition of foreign insolvencies by the High Court.

Read more: Cross Border Insolvency

Secured Lenders Denied Right to Credit Bid

By Paul A. Rubin
Herrick, Feinstein LLP, New York, New York, USA

Courts continue to negate the rights of secured creditors in bankruptcy cases. In the latest move, a federal appeals court has permitted an asset sale to third parties without allowing the secured lenders to credit bid for their collateral. Click here to read the entire alert.

Administration Process Effect on UK Corporate Insolvency and IP Contracts

Paul Rippon and Geoffrey Sturgess from Blake Lapthorn explains how the administration process in the UK effects UK Corporate Insolvency and IP (and other) contracts.

Introduction to the administration process

Most corporate insolvencies of major companies in the UK commence with administration. The administration process was first introduced in the Insolvency Act 1986 ('the Act'). The idea behind the new administration process was to provide a rescue process for companies. Initially, a company could only go into administration following an administration petition being filed at court leading to a hearing which could result in an administration order. However, as a result of a new administration regime being added to the Act, with effect from 15 September 2003, by the Enterprise Act 2002 it is possible for a company to go into administration without a court hearing in appropriate circumstances merely by the filing at court of a notice of intention to appoint followed by a notice of appointment or, in some circumstances, just by filing a notice of appointment of an administrator. It is still possible to obtain an administration order from the court at a hearing, in certain situations, following what is now an application to the court rather than a petition.

Read more: How does the administration process in the UK effect existing contracts?