Let's Fly Away…..

The collapse of Woodville Consultants Ltd has exposed significant vulnerabilities in the rapidly expanding litigation funding market, which operates largely outside mainstream financial regulation. With nearly £300 million owed to retail investors and questionable lending practices to law firms, the case raises critical questions about investor protection, regulatory oversight, and the future balance of power in funded litigation.

Formal insolvencies continue to increase in England and Wales with numbers currently 10% higher than in 2022. In particular, quarterly numbers for Q1 and Q2 2023 are higher than they have been since Q2 2009.

Companies House register, targeting unregulated firms that create false UK business presences for overseas clients. The latest enforcement reflects wider reforms under the Economic Crime and Corporate Transparency Act to improve transparency, strengthen anti-money laundering controls and protect the integrity of UK company registration.

On 14th July, the John Lewis Partnership announced that it would be cutting up to 1,000 jobs across its John Lewis and Waitrose stores in a bid to streamline management structures.

The English High Court has stayed proceedings challenging Hunkemöller's liability management exercise pending judgment in related New York litigation. This decision examines the limitations of multi-jurisdictional litigation strategies in cross-border restructurings and the enforceability of exclusive jurisdiction clauses for beneficial noteholders. The ruling provides critical guidance on the sequencing of claims across different jurisdictions when challenging complex liability management exercises.

Directors of insolvent companies may face misfeasance claims when liquidators or administrators investigate potential misuse of company funds, breaches of fiduciary duties, or prioritizing personal interests over creditors. Understanding the legal framework under section 212 of the Insolvency Act 1986, common allegations, and available defenses is crucial for directors navigating these serious investigations that can result in personal liability and disqualification.

The High Court has determined that administrators can enter into litigation funding arrangements allowing funders to be repaid from litigation proceeds ahead of moratorium debts with "super priority" status, provided this aligns with the administration's purpose and the administrators' duties. This ruling addresses a critical question about the interplay between protected moratorium creditors and the practical realities of funding litigation in insolvency proceedings.

As a company is considering or entering administration, there may be concerns that creditors will seek to take interim action against the company to satisfy any outstanding debt owed.

The High Court has clarified the interaction between mental health crisis moratoriums under the Debt Respite Scheme and secured lending enforcement. When property security covers a company's debt rather than an individual's personal liability, receivers can proceed with sales despite the moratorium. This decision provides crucial guidance for insolvency practitioners and lenders navigating the complex intersection of mental health protections and security enforcement.

The sizeable premium for an ATE insurance policy will no longer be recoverable from an unsuccessful opponent if the policy is taken out later than 31 March this year...