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Insolvency Matters

Issue 3: July 2025

Insolvency Matters

Editor's note

Radford Goodman

Welcome to Issue 3 of Insolvency Matters, bringing together our pick of the key legal developments in insolvency and restructuring over the first half of 2025. Notably, the Supreme Court has issued important decisions relating to fraudulent trading, transactions defrauding creditors and directors' fiduciary obligations. At the same time, contested restructuring plans have twice reached the Court of Appeal (in Thames Water and Petrofac). These and other developments are summarised below. We wish all of our readers a safe and enjoyable summer.

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Liability & Limitation in the Supreme Court - Bilta (UK) Ltd (in liquidation) v Tradition Financial Services Ltd

The recent Supreme Court decision in Bilta (UK) Ltd (in liquidation) and others v Tradition Financial Services Ltd [2025] UKSC 18 marks a significant moment in the interpretation of fraudulent trading under section 213 of the Insolvency Act 1986. The judgment expands the scope of section 213, affirming that liability for fraudulent trading is not confined to those in managerial roles within the insolvent company. Instead, it can extend to any party knowingly participating in the company's fraudulent business.

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Thames Water in the Court of Appeal - charting the course

This is only the second time that the Court of Appeal has considered restructuring plans. The previous occasion was in Re AGPS Bondco Plc [2024] EWCA Civ 24 (referred to commonly as "Adler"). However, the flurry of further first instance decisions on challenges to such plans showed that there remains a great deal of uncertainty in this area (see our previous article on some of the issues raised in these challenges).

News
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Stop all the clocks: How administration affects limitation periods

The recent ruling in Contract Natural Gas Limited v ZOG Energy Limited [2025] EWHC 86 (Ch) clarifies the impact of administration on limitation periods for claims, offering crucial guidance for creditors. This case saw Judge Andrew Twigger KC determine whether time stops running for limitation purposes when a company enters administration, and what this means for creditors seeking to assert such claims.

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