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JULY 2013
Legal Focus
79
The global financial crisis left many companies with shrinking asset values and considerable debt with little or no chance of repayment. Market losses over the last year or so dampened spirits regarding the expectations of recovery, lowering business confidence globally and enhancing the risk of falling back into recession.
T
he insolvency market has undergone considerable change and development over recent years and according to a recent report, the global financial crisis has
significantly contributed to an increase in in- solvency work, keeping bankruptcy lawyers across the world very busy. Insolvency is viewed as the least favourable outcome, and creditors and stakeholders are increasingly turning to restructuring strategies in an effort to avoid becoming insolvent, preferring options that offer greater value return potential.
Recently the UK Supreme Court made a significant decision in the case of BNY Corporate Trustee Services Limited and others v Eurosail-UK 2007-3BL PLC concerning the use of balance sheet tests for insolvency, perhaps changing the way this process is viewed and used in the future. To find out more about this decision and its effects, we speak to two experienced professionals who are highly skilled in this practice area, and therefore well-placed to provide expert comment. LM