Insolvency Bitesize – October 2023

Welcome to our third edition of Insolvency Bitesize for 2023. 

We have two feature articles in this edition:

  • Distressed disposals and the prevalence of business common sense: the High Court recently considered the construction of market-wide intercreditor agreement distressed disposal provisions in the context of a secured share sale enforcement in Galapagos. The market standard provisions were found to be an effective tool for senior creditors to deliver an out-of-court restructuring, successfully restricting the enforcement rights of junior creditors.
  • Pragmatism in sustaining defective administration appointments: the High Court recently addressed a range of issues in response to a shareholder’s failed attempt to overturn a qualifying floating charge holder’s out-of-court administration appointment. The case usefully highlights the current approach of the court to administration appointment validity issues, as well as some helpful reminders around contractual drafting, making demands for payment and the sending of contractual notices.

We hope you enjoy this edition.

We look forward to updating you on legal developments in further editions of Insolvency Bitesize. If there are colleagues you would like to add to the distribution list, please let us know.