In October 2018, Quintis Limited, with some 13,000 hectares (32,110 acres) of sandalwood to grow and harvest in Australia, completed a recapitalisation of its business and restructuring of the group balance sheet and debt instruments. The restructure design utilised Australian voluntary administration and scheme of arrangement processes in conjunction with a U.S. Chapter 15 filing recognition proceeding.

Quintis is the latest formal Australian turnaround to use rescue features recognisable to a North American readership. Others include Ten Network, Paladin Limited, Atlas Limited,...

Recreational cannabis use became legal in Canada on October 17, 2018. Canada is now the second country in the world—and the first G-7 nation—to authorize a national cannabis market.1 The passage of Bill C-45, otherwise known as the Cannabis Act, marks a historical moment for advocates of cannabis legalization.

In the United States in 2018, cannabis supporters celebrated smaller victories, with nine states and the District of Columbia now allowing for recreational cannabis use and 30 states allowing for medical cannabis use. Yet cannabis remains illegal in the United...

Post-Brexit, how would creditors in the U.K. retrieve assets that had been transferred to Europe? How would creditors recover debts from European Union (EU) companies that are insolvent? This article looks at how the European Regulation on Insolvency Proceedings (EIR) and recognition of insolvency judgments, as well as schemes of arrangement, will be impacted by Brexit. Just to be clear, English law in relation to insolvency and restructuring procedures is not impacted by Brexit.

Current Position

The EIR was adopted in 2000, came into force in 2002, and was...

Some dreamed of it and others dreaded it, but nobody actually expected the Brexit referendum result. As such, politicians and business leaders seemed unprepared for the negotiations and practicalities of Britain’s exit from the European Union.

Nassim Taleb wrote in “Black Swan” (part of his Incerto series) about unexpected, rare events that are hard or even impossible to predict and have a disproportionately large impact on society, business, finance, and history. Brexit seems to fit this bill. Yet, a key feature of the Brexit narrative, now and as academics build their careers...

Post-Brexit, how would creditors in the U.K. retrieve assets that had been transferred to Europe? How would creditors recover debts from European Union (EU) companies that are insolvent? This article looks at how the European Regulation on Insolvency Proceedings (EIR) and recognition of insolvency judgments, as well as schemes of arrangement, will be impacted by Brexit. Just to be clear, English law in relation to insolvency and restructuring procedures is not impacted by Brexit.

Current Position

The EIR was adopted in 2000, came into force in 2002, and was recast in 2017....

Venezuela is one of the richest countries in Latin America and has the world’s largest oil reserves. But it also has too much debt, severe corruption, and related economic, political, and social problems. What unfolds there will make it a top restructuring story in 2018 and beyond.

Venezuela’s plight might seem curious given its wealth and oil reserves. But the country’s poverty rate is at 82 percent, and many of its 30 million citizens reportedly live on just $8 a month. Some are moving to other South American countries or elsewhere. Others who remain are starving and lack enough...

Restructuring professionals welcome change in the economic order of things. Failed managements’ reactions to change provides increased turnaround opportunities. Companies are forced to adjust to structural change and need professional advice in doing so. With the new U.S. president threatening to upset the established liberal transnational economic order and replace it with a nationally focused protectionist policy, there are significant ramifications for both U.S. and European companies.

The new administration has introduced uncertainty into European business planning. That is bad...

At least up until now, the Japanese buyout market has disappointed many market players in terms of market volume, which, according to Asia Private Equity Review, was $3.6 billion in 2016. This is a 69 percent decrease from 2008 and represents less than 0.1 percent of the nation’s gross domestic product (GDP). Despite Japan being home to more than 3,500 domestic companies and possessing the third-largest economy in the world, its buyout industry is still only a small part of the country’s overall economy.

However, it is mainly the players who benefit from fees that are most...

Directors of Australian companies face some of the world's harshest penalties for continuing to trade a company while that company is insolvent.1 These penalties include civil liability of up to AU$200,000 (more than US$150,000), unlimited compensation penalties, and even criminal charges carrying penalties of up to five years' imprisonment.

Currently, under section 588G of the Corporations Act 2001, a director of an Australian company can be liable for insolvent trading if:

  • The person is a director of a company at the time when the company incurs a debt; and
  • ...

The recent New South Wales Supreme Court decision in Forge Group Power Pty Limited (in liquidation)(receivers and managers appointed) v. General Electric International Inc. [2016] NSWSC 52 clarifies two key issues concerning the scope of Australia’s Personal Property Securities Act 2009 (Cth) and its application to leases:

  1. What constitutes “regularly engaged in the business of leasing goods” for the purpose of Section 13(2)(a)
     
  2. The effect of the title vesting provision in Section 267(2) whereby unregistered security interests become vested in the grantor
  3. ...