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Cryptocurrencies in Insolvencies

Cryptocurrencies in Insolvencies

The UK does not currently regulate cryptocurrencies and they are not recognised as legal tender or currency. Due to the wide drafting of the Insolvency Act, cryptocurrencies are included as an asset of the estate which can lead to several issues for insolvency practitioners (“IPs”). Identifying cryptocurrencies is difficult and the starting point for IPs would be to use the information received from the directors of the company and collate further information from the company’s books, records, accounts and stock/assets. If it has been established that a cryptocurrency exists, IPs would then need to take control of the cryptocurrency. Cryptocurrency is stored in electronic “wallets” which are accessible through publicly available software which requires a passkey. IPs must act quickly to take control of any cryptocurrencies. To be able to realise cryptocurrency, IPs will usually have to engage forensic specialists. The value of cryptocurrency is volatile and the timing of… Read more


Draft Finance Bill 2019-20

Draft Finance Bill 2019-20

HMRC’s reinstatement as a preferential creditor in relation to certain debts in corporate insolvencies was included in the draft Finance Bill 2019-20, published on the 11th July 2019. From the 6th April 2020, HMRC will rank behind fixed charge holders and ordinary preferential creditors (employees). The preferential status will only… Read more


Cross-border insolvency in the event of a ‘no-deal Brexit’

Cross-border insolvency in the event of a ‘no-deal Brexit’

Whilst there are currently several different outcomes of Brexit, it is crucial for businesses to prepare for a no-deal Brexit. England is recognised as a worldwide specialist in the provision of restructuring and insolvency services, however in the event of a no-deal Brexit this recognition will potentially cease to exist.… Read more


The Insolvency (Amendment)(EU Exit) Regulations 2019 (the Insolvency Exit Regulations) (2019 No 146) were made on 30 January 2019

The Insolvency (Amendment)(EU Exit) Regulations 2019 (the Insolvency Exit Regulations) (2019 No 146) were made on 30 January 2019

The Insolvency Exit Regulations amend Regulation (EU) 2015/848 on Insolvency Proceedings by disapplying virtually all of its provisions such that the UK will not be obliged to recognise member state insolvency proceedings (unless a different basis for recognition, such as the Cross-Border Insolvency Regulations 2006 (the CBIR), applies  … Read more


Insolvency regime for further education and sixth form colleges

Insolvency regime for further education and sixth form colleges

Part 2 of the Technical and Further Education Act 2017 (TFEA) introduces a new insolvency regime for further education and sixth form colleges in England and Wales. Perhaps its most notable feature is that it creates a special education administration regime (which can only be initiated by the relevant… Read more


2018 Insolvency Statistics

2018 Insolvency Statistics

Q4 2018 (October-December) England & Wales insolvency statistics (published  by the Insolvency Service) have shown an increase in both personal and  corporate insolvency. Seasonally adjusted corporate insolvencies in 2018 rose 10% from 2017. Excluding one-off events, there were 16,090 insolvencies in 2018. Seasonally adjusted corporate insolvencies fell by 9% in… Read more


HMG’s announcement of the effect of a no deal Brexit on insolvency

HMG’s announcement of the effect of a no deal Brexit on insolvency

HMG’s announcement on the impact of a no-deal Brexit on cross-border insolvency is two paragraphs long. The first paragraph says: ‘The majority of the Insolvency Regulation, which covers the jurisdictional rules, applicable law and recognition of cross-border insolvency proceedings, would be repealed in all parts of the UK. … Read more


Preferential status for HMRC revisited

Preferential status for HMRC revisited

The Chancellor announced during the recent budget that from the 6th April 2020 certain debts owed to HMRC will be treated as secondary preferential debts, moving them up the order of priority and providing HMRC with a greater ability to recover taxes paid by employees and customers. The debts in… Read more


New Scottish Insolvency Rules

New Scottish Insolvency Rules

The long awaited new Scottish Insolvency Rules for Company Voluntary Arrangements and Administration (The Insolvency (Scotland) (Company Voluntary Arrangements and Administration) Rules 2018) have recently been laid in Parliament today. The Rules are a negative SI which means they do not need active approval by Parliament and will automatically come… Read more


New Insolvency Proposals

New Insolvency Proposals

The Government’s proposals for reforming the corporate insolvency and corporate governance landscape, published over the August bank holiday, will see the biggest changes to the UK’s insolvency landscape since the 2002 Enterprise Act. The proposals include new business rescue tools, procedures and measures to ensure greater director accountability. Highlights of… Read more