Insolvency and Secured Transactions

Meet the Co-chairs - TAGLAW

Turner, Andrew R.
Conner & Winters, LLP

Williamson, Deborah
Dykema Cox Smith

Insolvency and Secured Transactions

There is a lot of press coverage about the Hanjin bankruptcy, but very little of it provides tangible facts for traders to rely on. One thing we know for sure is Hanjin filed a Chapter 15 bankruptcy in the U.S. What that means is the U.S. bankruptcy court will defer to the Korean bankruptcy court regarding how the case will proceed. The U.S. court will limit its orders to cargo in the U.S. or touching the U.S. Most importantly right now, if you think you have a claim against Hanjin, you need to file that claim in the Korean bankruptcy proceeding, and you must do that between October 11 and 25, 2016. If you miss that claim deadline, you will be out of luck. There are a handful of Korean lawyers representing the interests of cargo owners and other potential claimants in Korea and they should be contacted immediately. Referrals are available.

Beside this one fact, there are a lot of pending questions...

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When a corporation has spent all its equity through the accumulation of losses, thus showing a negative equity in its balance sheet, Section 225 (1) of the Business Enterprise Code (UGB) prescribes that its management must explain in the notes to the annual accounts whether the debt level is high enough to be of relevance under insolvency law. This would be the case if a negative continuity forecast were added to the debts on the books.

Read more: Company in Distress – Remedies and Solution

On 25 April 2016, the Supreme Court of the Republic of Indonesia issued Circular Letter No. 2 of 2016 on Enhancing Efficiency and Transparency of Handling of Bankruptcy and Suspension of Payment Case at the Commercial Court (“Circular Letter 2/2016”). In essence, the salient features of Circular Letter 2/2016 are as follows:

Read more: New Procedure for Appointing the Receiver in Bankruptcy Case

Contact: Budidjaja & Associates Lawyers

The Bank Indonesia (“BI”), recently issued a new regulation regarding Hedging Transaction Based on Sharia Principles, namely Bank Indonesia Regulation No. 18/2/PBI/2016 (“BI Regulation No.18/2016”). This regulation was effectively applied on 26 February 2016. The background of the issuance of this new regulation is to protect the business actor who performed the foreign exchange transaction by using sharia principles from the uncertainty of the recent exchange rates.

Read more: New BI Regulation on Hedging Transaction Based on Sharia Principles

Contact: Tony Stumm, Partner; Carter Newell (Queensland, Australia)

It sometimes happens that stakeholders become disgruntled with the liquidator appointed to wind up the affairs of a company. So, what can be done?

There is power in s 473(1) of the Corporations Act 2001 (Cth) for the court to remove (and replace) a liquidator. But, how hard is this process?

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