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Two companies liquidated after investigation into fraudulent investor scheme

Two companies liquidated after investigation into fraudulent investor scheme

On 7 October 2019 Dionysus Design Services Ltd and Gem Tobin Ltd were wound up in the public interest. The High Court heard that the two companies had been investigated by the Insolvency Service as a result of its earlier inquiries into associated companies Halifax Mannin Ltd and Hey Design Services Ltd. Both of the associated companies had been wound up in the public interest earlier in the year. It was established by the Insolvency Service that Dionysus Design Services Ltd and Gem Tobin Ltd had obtained payment from proposed investors who thought they were investing in works of art by renowned painters. It appeared to the investigators to be a continuation of the work of the associated companies. The Insolvency Service also found that the £1m art investment scheme was run by a separate company in Spain or Morocco named Asset Consulting Services or Asset Consulting Group which has… Read more


Prison term given to bankrupt concealing property

Prison term given to bankrupt concealing property

The Insolvency Service has reported that a bankrupt who fraudulenty disposed of property has received a four-month prison sentence.   It was found that the individual was aware of his debt issues however he instructed a firm of solicitors to transfer his share in a property (estimated to have been… Read more


Debenhams CVA upheld

Debenhams CVA upheld

A challenge by a group of landlords to the voluntary arrangement of the Debenhams retail group has been dismissed by Mr Justice Norris. The landlords claimed that they were unfairly prejudiced and that there was a material irregularity in the CVA. It was also claimed that the CVA went beyond… Read more


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… 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