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[In]Solvency Matters: The Creditor Duty

Posted on 8 February 2024

In these bitesize clips the Insolvency Litigation team at Mishcon de Reya tackle key issues facing various sectors, key case law and legislative updates and market insights.

When can ongoing legal proceedings trigger the directors of a company's duties to its creditors?

In this video, Tyrone Rees-Davies examines how the courts have applied the duty owed by directors to a company's creditors in the context of insolvency since the Supreme Court's landmark decision in Sequana, and how this can interact with ongoing legal proceedings involving the company.

Specifically this video discussed:

  • When the duty to creditors arises
  • What the directors must know for the duty to arise
  • How this was applied in the case of Hunt v Singh 
  • What this means for directors when assessing the impact of legal proceedings on the solvency of the company

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