Optimise Insolvency Claims

Insolvencies are set to rise in 2025, with SMEs in industries like hospitality and retail facing the greatest challenges. With changes to employer National Insurance and National Minimum Wage coming in April, the next few months will be crucial for businesses as they manage these financial pressures. https://lnkd.in/ew3kYXfp

𝐓𝐡𝐞 𝐁𝐮𝐝𝐠𝐞𝐭 - 𝐤𝐞𝐲 𝐢𝐧𝐬𝐨𝐥𝐯𝐞𝐧𝐜𝐲 𝐚𝐧𝐝 𝐫𝐞𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐢𝐧𝐠 𝐭𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬. The Optimise team takes a look at the key insolvency related takeaways from yesterday’s Budget: 𝐑𝐢𝐬𝐞 𝐢𝐧 𝐞𝐦𝐩𝐥𝐨𝐲𝐞𝐫𝐬’ 𝐍𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐈𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞 𝐚𝐧𝐝 𝐌𝐢𝐧𝐢𝐦𝐮𝐦 𝐖𝐚𝐠𝐞   Rachel Reeves announced that the amount businesses will pay on their employees' national insurance contributions will increase from 13.8% to 15% from April 2025.   She also lowered the current £9,100 threshold employers start paying national insurance on employees' earnings to £5,000, in what she called a "difficult choice" to make.   The Chancellor also increased the minimum wage for those aged 21 years and over by 6.7% to £12.21 with effect from April 2025 - with pay for those aged 18 to 20 set to go up by 16.3% to £10 an hour.   Leading business groups said the Budget was a "tough" one, with companies already grappling with big increases in employment costs.   𝐂𝐨𝐯𝐢𝐝 𝐜𝐨𝐫𝐫𝐮𝐩𝐭𝐢𝐨𝐧 𝐜𝐨𝐦𝐦𝐢𝐬𝐬𝐢𝐨𝐧𝐞𝐫   Rachel Reeves confirmed that a Covid corruption commissioner will be appointed to examine Covid-related fraud.    The Chancellor said: “That money belongs in our public services, and tax payers want that money back.”   The commissioner will work with HMRC, the Serious Fraud Office and the National Crime Agency to examine an estimated £7.6bn worth of fraud.   𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐆𝐚𝐢𝐧𝐬 𝐓𝐚𝐱 (𝐂𝐆𝐓) 𝐚𝐧𝐝 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐀𝐬𝐬𝐞𝐭 𝐃𝐢𝐬𝐩𝐨𝐬𝐚𝐥 𝐑𝐞𝐥𝐢𝐞𝐟 (𝐁𝐀𝐃𝐑) 𝐜𝐡𝐚𝐧𝐠𝐞𝐬 𝐰𝐡𝐞𝐧 𝐜𝐥𝐨𝐬𝐢𝐧𝐠 𝐚 𝐬𝐨𝐥𝐯𝐞𝐧𝐭 𝐥𝐢𝐦𝐢𝐭𝐞𝐝 𝐜𝐨𝐦𝐩𝐚𝐧𝐲 An increase in CGT means tax liabilities when liquidating a solvent limited company are subject to increase from April 2025, along with the rate of CGT available under BADR.     CGT rates for Members’ Voluntary Liquidations will rise from 10% to 18% (lower rate) and 18% to 24% (higher rate).   BADR rate will increase from 10% to 14% in April 2025, and 18% in April 2026; lifetime cap remains at £1 million.   𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐑𝐚𝐭𝐞𝐬   The Chancellor confirmed that the 75% discount to business rates which is due to expire in April 2025 will be replaced by a discount of 40% - which applies up to a maximum £110,000 per business. This will see business rate bills for companies almost double.

Case update: October 2024 - Optimise’s regular round-up of cases of interest to insolvency practitioners and solicitors. 𝗪𝗲𝗯𝗯 𝘃 𝗘𝘃𝗲𝗿𝘀𝗵𝗼𝗹𝘁 𝗥𝗮𝗶𝗹 𝗟𝗶𝗺𝗶𝘁𝗲𝗱 [𝟮𝟬𝟮𝟰] 𝗘𝗪𝗛𝗖 𝟮𝟮𝟭𝟳 (𝗖𝗵) In a rare case, The High Court has dismissed an application by liquidators pursuant to sections 235 and 236 of the Insolvency Act 1986, which give office-holders broad powers to obtain information and documents concerning the company and its affairs. https://lnkd.in/emJTPCGN 𝗣𝗞 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀 𝗟𝗶𝗺𝗶𝘁𝗲𝗱 𝘃 𝗦𝗲𝗯𝗮𝗷𝗲𝗲𝘃𝗮𝗻 𝗦𝗮𝗯𝗮𝗿𝗮𝘁𝗻𝗮𝗺, 𝗔𝗹𝗲𝗸𝘀𝗮𝗻𝗱𝗿𝗮 𝗣𝗼𝗱𝗹𝗮𝘀𝗸𝗮 [𝟮𝟬𝟮𝟰] 𝗘𝗪𝗛𝗖 𝟮𝟭𝟴𝟴 (𝗖𝗵) In another rare case, a breach of director’s duty claim was found to be suitable for summary judgment. A Director who made high risk transactions while his company was at risk of insolvency and had no paper trail to evidence what those transactions were, or to show he tried to act in the best interests of the company, was found personally liable for losses suffered by a creditor. https://lnkd.in/exsvPKDX 𝗨𝗞 𝗖𝗼𝗺𝗺𝗲𝗿𝗰𝗶𝗮𝗹 𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝗛𝗼𝗹𝗱𝗶𝗻𝗴𝘀 𝗟𝘁𝗱 𝘃 𝗖𝗶𝗻𝗲-𝗨𝗞 𝗟𝘁𝗱 & 𝗔𝗻𝗼𝗿 The English Court has approved the restructuring plans of four UK companies in the Cineworld Group, binding dissenting landlord classes. https://lnkd.in/eF7Gwj4k 𝗣𝗲𝗮𝗯𝗼𝗱𝘆 𝗧𝗿𝘂𝘀𝘁 𝘃 𝗡𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗛𝗼𝘂𝘀𝗲-𝗕𝘂𝗶𝗹𝗱𝗶𝗻𝗴 𝗖𝗼𝘂𝗻𝗰𝗶𝗹 [𝟮𝟬𝟮𝟰] This recent judgment from the Technology and Construction Court sheds light on the time limits for bringing insurance claims and addresses when the time period starts to run. https://lnkd.in/ezbfY6DQ 𝗖𝗵𝗿𝗶𝘀𝘁𝗼𝗽𝗵𝗲𝗿 𝗧𝘂𝗿𝗻𝗯𝘂𝗹𝗹 A case from the Scottish Courts explores the remedy of winding up a company on just and equitable grounds, in the context of a shareholder dispute. https://lnkd.in/eMdSZHAG 𝗜𝗻 𝘁𝗵𝗲 𝗺𝗮𝘁𝘁𝗲𝗿 𝗼𝗳 𝗠𝗲𝗴𝗮 𝗚𝗼𝗹𝗱 𝗛𝗼𝗹𝗱𝗶𝗻𝗴𝘀 𝗟𝗶𝗺𝗶𝘁𝗲𝗱 The Hong Kong court departs from English law in its approach to arbitration clauses in insolvency cases. https://lnkd.in/gcpNvCwk

Optimise was proud to sponsor yesterday’s R3 Yorkshire Business Lunch. The event highlighted the strength of Yorkshire’s insolvency and restructuring community and we look forward to seeing more industry professionals at future events! R3 Association of Business Recovery Professionals https://lnkd.in/eX2_EnaT

Optimise is thrilled to be the entertainment sponsor for the upcoming R3 Yorkshire Business Lunch! We're looking forward to a great afternoon at The Met Leeds Hotel with the R3 Association of Business Recovery Professionals. See you there! https://lnkd.in/eUHHqpF5

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Don't let the size of a claim hold you back. With our flexible approach, Optimise can consider high-value insolvency claims as well as those valued at circa £75,000 and above, which may be overlooked or deemed too small by traditional funders. Don't let the size of a claim deter you - reach out to Optimise for a tailored funding solution that suits your needs. . . . 📧 info@optimiseinsolvencyclaims.co.uk 🌐 https://lnkd.in/eKzMeKxF 🔗 Optimise Insolvency Claims

Case Update - Optimise’s new monthly round-up of cases of interest to insolvency practitioners and solicitors - July 2024... 1️⃣ Hellard & Ors v OJSC Rossiysky Kredit Bank & Ors [2024] EWHC 1783 (Ch) The court provided further clarification on the meaning of ownership or control by a designated person under the UK sanctions’ regime. Link to Judgment: https://lnkd.in/gq3WESfk 2️⃣ Sian Participation Corp (in liquidation) v Halimeda International Ltd [2024] UKPC 16 (Sian) Winding up companies where the underlying debt is subject to an arbitration agreement or the exclusive jurisdiction of a court outside England and Wales has now become easier following this Privy Council decision. Link to Judgment: https://lnkd.in/exHtG6pb 3️⃣ Consort Healthcare (Tameside) Plc v Tameside And Glossop Integrated Care NHS Foundation Trust [2024] EWHC 1702 (Ch) The High Court has for the first time awarded security for costs in respect of a challenge to a proposed English restructuring plan. Link to Judgment: https://lnkd.in/e_bUikKU 4️⃣ Anthony John Wright and Geoffrey Paul Rowley & Ors v Dominic Joseph Andrew Chappell & Ors (Re BHS Group Ltd & Ors (in liquidation)) In a rare example of insolvency practitioners successfully holding directors liable for “insolvency-deepening activity” claims, the High Court granted the largest-ever UK wrongful trading award and the first-ever award for “misfeasant trading”. While this is undoubtedly a landmark judgment, will the misfeasance trading claim withstand any appeal and can the directors meet their liabilities? Link to Judgment: https://lnkd.in/epHgkvbg 5️⃣ Pindar Scarborough [2024] and Boughey v Toogood [2024] This case confirmed that a "secured creditor" under section 248 of the Insolvency Act 1986 should be construed in the present tense, retaining the status of secured creditor only if it is still owed a debt by the company in administration. Link to Toogood judgment: https://lnkd.in/emVTqzmg 6️⃣ Re UKCloud Ltd (in liquidation) [2024] EWHC 1259 (Ch) The High Court determined that a debenture created a floating charge rather than a fixed charge over certain internet protocol (IP) addresses. Link to judgment: https://lnkd.in/eT_7VUe3 To view our final four judgment choices, click below: https://lnkd.in/ehWRcPQ8

𝗝𝘂𝗻𝗲 𝟮𝟬𝟮𝟰 𝗜𝗻𝘀𝗼𝗹𝘃𝗲𝗻𝗰𝘆 𝗥𝗲𝗽𝗼𝗿𝘁    New data from the Insolvency Service reveals:   ▪ England and Wales have experienced the 𝘀𝗲𝗰𝗼𝗻𝗱-𝗵𝗶𝗴𝗵𝗲𝘀𝘁 𝗻𝘂𝗺𝗯𝗲𝗿 𝗼𝗳 𝗰𝗼𝗺𝗽𝗮𝗻𝘆 𝗶𝗻𝘀𝗼𝗹𝘃𝗲𝗻𝗰𝗶𝗲𝘀 𝘀𝗶𝗻𝗰𝗲 𝟮𝟬𝟬𝟵. ▪ There has been a notable 16% increase from May 2024. ▪ A total of 𝟮,𝟯𝟲𝟭 𝗰𝗼𝗺𝗽𝗮𝗻𝘆 𝗶𝗻𝘀𝗼𝗹𝘃𝗲𝗻𝗰𝗶𝗲𝘀 were recorded for June. Mark Goodwin, Managing Director, Optimise Insolvency Claims: "𝙒𝙞𝙩𝙝𝙞𝙣 𝙩𝙝𝙞𝙨 𝙡𝙖𝙧𝙜𝙚 𝙣𝙪𝙢𝙗𝙚𝙧 𝙤𝙛 𝙞𝙣𝙨𝙤𝙡𝙫𝙚𝙣𝙘𝙞𝙚𝙨, 𝙩𝙝𝙚𝙧𝙚 𝙖𝙧𝙚 𝙣𝙪𝙢𝙚𝙧𝙤𝙪𝙨 𝙡𝙚𝙜𝙞𝙩𝙞𝙢𝙖𝙩𝙚 𝙡𝙚𝙜𝙖𝙡 𝙘𝙡𝙖𝙞𝙢𝙨 𝙖𝙜𝙖𝙞𝙣𝙨𝙩 𝙛𝙧𝙖𝙪𝙙𝙪𝙡𝙚𝙣𝙩 𝙙𝙞𝙧𝙚𝙘𝙩𝙤𝙧𝙨 𝙩𝙝𝙖𝙩 𝙢𝙞𝙜𝙝𝙩 𝙣𝙤𝙩 𝙗𝙚 𝙥𝙪𝙧𝙨𝙪𝙚𝙙 𝙙𝙪𝙚 𝙩𝙤 𝙡𝙖𝙘𝙠 𝙤𝙛 𝙛𝙪𝙣𝙙𝙨. 𝙊𝙥𝙩𝙞𝙢𝙞𝙨𝙚 𝙞𝙨 𝙝𝙚𝙧𝙚 𝙩𝙤 𝙗𝙧𝙞𝙙𝙜𝙚 𝙩𝙝𝙞𝙨 𝙜𝙖𝙥, 𝙚𝙣𝙨𝙪𝙧𝙞𝙣𝙜 𝙩𝙝𝙖𝙩 𝙞𝙣𝙨𝙤𝙡𝙫𝙚𝙣𝙘𝙮 𝙥𝙧𝙖𝙘𝙩𝙞𝙩𝙞𝙤𝙣𝙚𝙧𝙨 𝙖𝙣𝙙 𝙘𝙧𝙚𝙙𝙞𝙩𝙤𝙧 𝙚𝙨𝙩𝙖𝙩𝙚𝙨 𝙧𝙚𝙘𝙚𝙞𝙫𝙚 𝙢𝙖𝙭𝙞𝙢𝙪𝙢 𝙧𝙚𝙩𝙪𝙧𝙣𝙨. 𝘽𝙮 𝙥𝙧𝙤𝙫𝙞𝙙𝙞𝙣𝙜 𝙩𝙝𝙚 𝙣𝙚𝙘𝙚𝙨𝙨𝙖𝙧𝙮 𝙛𝙪𝙣𝙙𝙞𝙣𝙜, 𝙬𝙚 𝙝𝙚𝙡𝙥 𝙚𝙣𝙨𝙪𝙧𝙚 𝙩𝙝𝙖𝙩 𝙟𝙪𝙨𝙩𝙞𝙘𝙚 𝙞𝙨 𝙨𝙚𝙧𝙫𝙚𝙙 𝙖𝙣𝙙 𝙘𝙧𝙚𝙙𝙞𝙩𝙤𝙧𝙨 𝙖𝙧𝙚 𝙛𝙖𝙞𝙧𝙡𝙮 𝙘𝙤𝙢𝙥𝙚𝙣𝙨𝙖𝙩𝙚𝙙."   Read more about the figures here:   England and Wales record second-highest level of company insolvencies since 2009 (https://lnkd.in/epufXmYg)

The Official Receiver has announced plans to return £280 million to creditors of the Thomas Cook group of companies, the high-street travel chain which went into liquidation in 2019 after last-minute efforts to secure a rescue deal failed. Read more here: https://lnkd.in/efycGcW6