Category Archives: Bankruptcy

Credit rating agencies have just declared that most medical debt will no longer appear on credit records.

Why have they done this?

These are capitalist organizations. They do not change policy due to some outbreak of suddenly being caring. Why is it that medical debt is to be scrubbed from credit records?

The answer is in the announcement. The decision to lend money to someone or not to do so, which is what a credit rating is used to inform, depends upon patterns of behavior, not sole instances of bad luck.

But the idea that medical debt leads to some grand portion of U.S. bankruptcies just isn't true. If medical debt is so bad a guide to default that we don't even want to include it in credit ratings, then it simply cannot be an important cause of bankruptcy, can it?

The people who lose in a bankruptcy filing are the lenders. They've told their data collectors that the presence of medical debt doesn't make enough difference to your chances of filing for bankruptcy that it's worth collecting said data. Therefore, medical debt is not an important determinant of whether you file for bankruptcy.

Money does talk, after all.

Follow this link:

Medical debt isn't all that indicative of bankruptcy - Washington Examiner

Nicole Barham, founder of Design Your Wealth, is an exemplary entrepreneur proving that the possibility of transforming a side hustle to a lucrative online business is so real.

With Design Your Wealth, Nicole Barham uses her experience to offer financial peace of mind for women entrepreneurs. The business acts as a platform for members to gain access to resources that help withplanning, tracking, and forecasting finances for business and in life.

I started the business after my own experience of not managing my finances properly landed me in bankruptcy court, she told TIME. I have a background in accounting and spent years taking care of my employers finances, so it was particularly heartbreaking that I was in this position.

In what she calls a rebuilding process, Barham felt empowered to not only regain control of her finances but to also encourage others to do the same.

I decided to use my skills to turn my finances around and teach other women how to do the same so they can actually build wealth in their businesses, she said.

Personal entrepreneurship is on the rise, especially the momentum of side hustles and online businesses. However, while it can be tough to excel at all business tasks, money management is the priority that is often overlooked due to a lack of awareness.

According to Barham, her experiences revealed to her that most people mismanage their finances and become overwhelmed by the lack of simplicity in the tools and platforms we have available to us, as well as the absence of support and accountability.

I saw so many women entrepreneurs like myself who werent on top of their finances, didnt know if they were making a profit or a loss, werent setting income goals and tracking against them, werent creating budgets, and were scrambling right at the tax deadline to get all their numbers together.

But even more, I saw myself in them. I had been in their shoes and knew that I had the expertise and tools to help them.

According to TIME, Barhams main offering is the membership program called 5 Minute Bookkeeper, which is an easy-to-implement business finance tracking and planning system that can be used to manage money in just five minutes a day.

This is our secret weapon to getting amazing results for our clients, Barham says. Its the difference between just having a gym membership and having a personal trainer. I wanted to ensure my clients get the results they desire.

Visit link:

Meet Nicole Barham: From Bankruptcy Court To Entrepreneur Helping Other Women Design Their Wealth - Black Enterprise

Black News Channel Co-Founder J.C. Watts speaks at network's opening celebration

The news network headquartered in Tallahassee began broadcasting Monday.

Tori Lynn Schneider, Tallahassee Democrat

On Friday, Princell Hair, president and CEO of Tallahassee-based Black News Channel, sent a note to employees informing them the channel was ceasing operations, hadaired its last show and will file for bankruptcy.

From: Princell Hair

Sent: Friday, March 25, 2022 2:55 PM

To: BNC Staff

Subject: Network Update

Dear BNC Colleagues,

A little more than two years ago, the lights on BNCs cameras flipped on for the first time. Despite the challenges of a global pandemic, we launched a groundbreaking mission to inject positive change into a news landscape that, for far too long, had underserved and overlooked Black and Brown people.

During the past few months, we have endured very painful workforce reductions at all levels of the network as we worked to achieve our financial goal of a break-even business. This has forced all of you to do more with less, and your contributions have been remarkable.

Unfortunately, due to challenging market conditions and global financial pressures, we have been unable to meet our financial goals, and the timeline afforded to us has run out.

The rise and fall of the Black News Channel:

Its with a broken heart that I am letting you all know that, effective immediately, BNC will cease live production and file for bankruptcy. We are saddened and disappointed by this reality and recognize the stress that this puts on you and your families.

With the nation on the verge of a social justice reckoning not seen in this country since the Civil Rights era, weve been hard at work building our presence in the marketplace with unprecedented speed. Through a continuous run of distribution agreements on both linear and streaming platforms, BNCs accessibility has grown to reach more than 250 million touchpoints.

Since rebranding and relaunching the network a year ago, we have developed a 17-hour daily block of live programming and a lineup of shows that are outstanding. Every day we present stories, context and viewpoints that illuminate and celebrate the Black experience in a way that no other network has since the dawn of television.

We have hired more than 250 Black journalists and Black production personnel, and all your hard work and dedication has lifted this network to incredible heights. There have been countless wins along the way, including gavel-to-gavel coverage of several trials that gripped our community, A-list guests throughout our dayparts and exclusive coverage of The Congressional Black Caucus first-ever response to the Presidents State of the Union address. Just this week we set an all-time viewership record for the network during wall-to-wall coverage of Judge Ketanji Brown Jacksons U.S. Supreme Court confirmation hearings.

I understand that this surprising and unfortunate news will naturally generate a lot of questions surrounding next steps. Our leadership team and human resources will be in touch to address them over the coming days and weeks.

Please know that I am very thankful for all of your hard work and deep commitment to our mission. We have differentiated ourselves, and your achievements over these last two years should be an immense source of pride that you will carry throughout the rest of your careers.

In the meantime, please take care of yourselves and each other, and remember that we built something great here. BNC, or something very close to it, will surely return at some point, because the world needs it, and all of you have proven it can be done.

Sincerely,

P R I N C E L L H A I R

Never miss a story: Subscribe to the Tallahassee Democrat using the link at the top of the page.

See the original post here:

'Broken heart': Read the CEO's letter to Black News Channel employees announcing closure - Tallahassee Democrat

Seadrill maintas a fleet of 34 owned vessels as it emerges from bankruptcy (Seadrill)

PublishedFeb 22, 2022 6:03 PM by The Maritime Executive

A year after filling for its second trip through bankruptcy court, Seadrill announced that it expects to emerge from the current proceedings by the end of this week. The company has been working to meet the conditions of the plan that was agreed to with its creditors last fall and approved by the bankruptcy court in October 2021.

Citing the prolonged downturn in the oil market coupled with the impact of COVID-19 pandemic, Seadrill filed for bankruptcy along with most of its affiliated companies in February 2021. At the time, the company reported that it had approximately $7.3 billion in debt. The company had previously worked out forbearance agreements with its lenders seeking to further push back the maturities on $5.7 billion of the bank debt which had been delayed to 2022 in the previous bankruptcy action four years earlier.

Under the terms of the new agreement approved by the court, a new public-traded holding company will be formed which they intend to list on the Euronext Expand market in Oslo in the second quarter of 2022. The new Seadrill Limited will have approximately 50 million new common shares outstanding, of which only a quarter of one percent (0.25%) will be allocated to existing shareholders of the company with the lenders controlling the new company. The goal of the plan was to reduce the company's debt by approximately $4.9 billion and supply $350 million in new financing.

As part of the reorganization plan, Seadrill proposed recycling 10 of its vessels from its fleet that had number 42 rigs before the filing. During the process, they reported that they had sold two rigs and were recycling an additional five. The fleet currently numbers 34 owned vessels, including drillships, jack-up rigs, and semi-submersibles. Earlier this week, SFL Corporation announced it would replace Seadrill with Odfjell Drilling for the management of one of the rigs.

Famed investor John Fredriksen surrendered his position in the company as part of the bankruptcy proceeding and a new board and CEO is being appointed. Fredriksen however is slated to retain a smaller unsecured bond loan of $50 million which subject to certain conditions could be converted into five percent of the new equity in the future.

Trading in the existing shares in Seadrill on the Oslo Stock Exchange will be suspended following the effective date of emerging from Chapter 11. The company says that it expects in the future to complete an uplisting to the main market of the Oslo Stock Exchange, as well as a listing on the New York Stock Exchange.

Read more:

Seadrill Expects to Emerge from Bankruptcy This Week - The Maritime Executive

Owning a restaurant is like being the captain of a ship. You have to worry not only about the state of the ship itself but the seas. Over the past two years, the COVID-19 pandemic has been responsible for the most unpredictable seas in decades. Between full closures, partial openings, back to full closures, then literally who knows what, many restaurant owners have run their ship into the rocks and many more will follow over the next weeks and months.

While the goal should always be to support restaurants in our home communities to the best of our ability especially mom-and-pop small food businesses even with our best efforts, sometimes the burden of keeping the restaurant open is just too much. Close to 100,000 restaurants have closed in the United States since the pandemic began, which is 15% of all restaurants a number that has sent the entire industry reeling.

So, what happens when a restaurant closes its doors? Michele Finizio, a New Jersey lawyer, explains the options a restaurant has if they choose to file for bankruptcy. Assuming the restaurant is actually operating legally, the owners could choose to declare bankruptcy. If they do, they have three options: Chapter 7, Chapter 11 or Chapter 13 bankruptcy. Each comes with certain advantages for the party filing.

In Chapter 7 bankruptcy, the restaurant would close and the bankruptcy court in the relevant jurisdiction (there are close to 100 bankruptcy jurisdictions in the United States) determines which of the creditors gets what. There is never enough to go around, so the courts job is to essentially prioritize assets and creditors. The first ones paid are sometimes the only ones paid and usually not in full.

The second option is called Chapter 11 bankruptcy. That is a type of bankruptcy that is favored by restaurants where they see a path to success on the horizon but need breathing room to reorganize the business. The business is allowed to continue, debts are reorganized and sometimes consolidated in a plan that is submitted to the court. The restaurant is allowed to continue to exist as long as the court accepts their plan, even if it doesnt result in all of the debts being paid off. Usually, the restaurant has to sell off some assets to be able to pay back debts, so Chapter 11 may not be ideal for a mom-and-pop food business.

Finally, for a Chapter 13 bankruptcy, the restaurant works with its creditors to renegotiate payments. This is the path a good number of restaurants have taken since the pandemic. It is ideal for a food business that was profitable before the pandemic, has experienced really hard times since mid-2020 (perhaps with a few breaks and a return to a more normal business) but now sees a path back to the way things once were.

No matter the legal path a restaurant chooses to take, the larger issue for all of us is that the vast majority of the restaurants that close simply wont be in a position to reopen. This hurts the economy writ large but most profoundly affects our local communities. Small food businesses not only support the families that own them seen collectively, but they are also an important group of employers throughout the nation.

Aron Solomon, J.D., is the head of strategy for Esquire Digital and editor of Todays Esquire. This column was provided by InsideSources.

Originally posted here:

Solomon: Is it too late to save more restaurants from bankruptcy? - Boston Herald

Owning a restaurant is like being the captain of a ship. You have to worry not only about the state of the ship itself but the seas. Over the past two years, the COVID-19 pandemic has been responsible for the most unpredictable seas in decades. Between full closures, partial openings, back to full closures, then literally who knows what, many restaurant owners have run their ship into the rocks and many more will follow over the next weeks and months.

While the goal should always be to support restaurants in our home communities to the best of our ability especially mom and pop small food businesses even with our best efforts, sometimes the burden of keeping the restaurant open is just too much. Close to 100,000 restaurants have closed in the United States since the pandemic began, which is 15 percent of all restaurants a number that has sent the entire industry reeling.

So, what happens when a restaurant closes its doors? Michele Finizio, a New Jersey lawyer, explains the options a restaurant has if they choose to file for bankruptcy. Assuming the restaurant is actually operating legally, the owners could choose to declare bankruptcy. If they do, they have three options: Chapter 7, Chapter 11, or Chapter 13 bankruptcy. Each comes with certain advantages for the party filing.

In Chapter 7 bankruptcy, the restaurant would close and the bankruptcy court in the relevant jurisdiction (there are close to 100 bankruptcy jurisdictions in the United States) determines which of the creditors gets what. There is never enough to go around, so the courts job is to essentially prioritize assets and creditors. The first ones paid are sometimes the only ones paid and usually not in full.

The second option is called Chapter 11 bankruptcy. That is a type of bankruptcy that is favored by restaurants where they see a path to success on the horizon but need breathing room to reorganize the business. The business is allowed to continue, debts are reorganized and sometimes consolidated in a plan that is submitted to the court. The restaurant is allowed to continue to exist as long as the court accepts their plan, even if it doesnt result in all of the debts being paid off. Usually, the restaurant has to sell off some assets to be able to pay back debts, so Chapter 11 may not be ideal for a mom-and-pop food business.

Finally, for a Chapter 13 bankruptcy, the restaurant works with its creditors to renegotiate payments. This is the path a good number of restaurants have taken since the pandemic. It is ideal for a food business that was profitable before the pandemic, has experienced really hard times since mid-2020 (perhaps with a few breaks and a return to a more normal business) but now sees a path back to the way things once were.

No matter the legal path a restaurant chooses to take, the larger issue for all of us is that the vast majority of the restaurants that close simply wont be in a position to re-open. This hurts the economy writ large but most profoundly affects our local communities. Small food businesses not only support the families that own them seen collectively, but they are also an important group of employers throughout the nation.

The rest is here:

Is It Too Late to Save More Restaurants From Bankruptcy? InsideSources - InsideSources

The corporate affairs ministry is set to propose amendments to the Insolvency and Bankruptcy Code (IBC), based on recommendations made by a parliamentary panel, in the budget session of Parliament, according to a person familiar with the development.

The draft bill to amend IBC, which has to be first cleared by the Union cabinet, seeks to reduce the time between filing a bankruptcy petition and its admission in tribunals, speed up the approval of corporate rescue plans, and maximize the value of assets available for restructuring. The budget session of Parliament, currently on a break, will resume by mid-March and continue till the second week of April.

In case of a procedural delay in tabling the bill in the budget session, the government has the option of making the changes through an ordinance, without waiting for the Parliaments monsoon session, the person cited above said seeking anonymity.

The bill also seeks to add a new chapter on cross-border bankruptcy resolution to the IBC, filling a major gap in the current regime.

The effort (in framing the bill) has been to address most concerns raised by the Parliamentary standing committee in the best possible way. Making the law is one thing. Its implementation and development of the ecosystem are other issues. Vacancies in the National Company Law Tribunal benches are also being filled," the person said.

The proposed amendments seek to address the concerns raised by the parliamentary panel led by Lok Sabha MP Jayant Sinha in August. The panel expressed concern about the steep haircuts taken by lenders in some cases and delays beyond six months in stitching together resolution plans in many cases.

The bill also incorporates feedback from two rounds of public consultations. It seeks to empower bankruptcy resolution professionals hired by lenders to run distressed companies to review the past conduct of the distressed company and take corrective steps to protect the interests of stakeholders.

According to the proposal, past transactions starting from the bankruptcy filing date, rather than the admission of bankruptcy, will come under the company administrators review. The idea is to prevent a delay in the admission of a bankruptcy case from causing value erosion because significant pre-bankruptcy deals are out of the review ambit.

The current law allows resolution professionals to approach tribunals to annul a transaction of a bankrupt company dating back up to two years from the date of admission in the case of related-party transactions and up to one year in the case of others.

Queries emailed to a corporate affairs ministry spokesperson on Saturday for comments remained unanswered till the time of publishing.

The application of the look-back period from the date of filing the bankruptcy application increases the period under audit to identify preferential or undervalued transactions, and thus increases the scrutiny to identify any wilful default," said Divakar Vijayasarathy, founder and managing partner of consultant DVS Advisors LLP.

Experts also pointed out that ensuring quick admission of cases would go a long way in meeting the goals of IBC.

The institutional framework for bankruptcy resolution must be efficient, and decisions have to be taken in a timely manner. The efforts to rescue companies in distress will fail if tribunals take a long time to admit cases," said Anoop Rawat, partner, insolvency and bankruptcy, Shardul Amarchand Mangaldas and Co., a law firm. In many instances, cases were admitted more than a year after the bankruptcy filing, said Rawat, adding that ensuring that the ecosystem has sufficient bench strength is also vital.

One of the proposals by the government panel that formed the basis of the proposed amendments was that the corporate rescue plan has to be cleared by the National Company Law Tribunal within 30 days. This, according to Vijayasarathy, would ensure faster resolution and makes it difficult for the promoters to carry out any preferred transaction.

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

View original post here:

Bankruptcy resolution shifting to fast track - Mint

Manila: During the toughest stages of the pandemic, a Philippine Airlines (PAL) pilot Jimmy* was grounded for months.

Initially, he was involved in the repatriation of Filipinos from different countries. At the end of 2020, the Philippine's flag-carrier reported a massive loss amounting to $-1.4 billion.

Strict travel curbs rapidly taken by countries tolimit the spread of the pandemic dealt a huge blow to most airlines.

To keep himself busy, Jimmy helped in his familys rice mill and trading business. Now, with the Philippines borders reopened, Jimmy is back in the skies flying. His journey is emblematic of what happened to the country's 81-year-old carrier.

Faced with pandemic-induced financial turbulence, PAL filed for Chapter 11 on September 3, 2021 with the US Bankruptcy Court for the Southern District of New York. The court granted the request.

However, its Chapter 11 filing and subsequent court approval, did not mean PAL faced a shutdown. It kept operating domestic and limited international (repatriation) flights.

It was allowed to reorganise to carry out its rehabilitation plan with the aim of paying creditors over a period of time.

Whats the airlines financial standing during the pandemic?

In an end-September report to the bankruptcy court, PAL Chief Financial Officer Nilo Thaddeus Rodriguez showed the airline had a gross income of $91.75 million for the month and loss of $29.56 million (Php1.5 billion).

In getting its Chapter 11 filing approved, PAL got a breathe of fresh air, giving it time to restructure on the hope that the pandemic restrictions would ease.

What is Chapter 11 bankruptcy protection?

Chapter 11 of the Bankruptcy Code permits reorganisation under the US bankruptcy laws. During a Chapter 11 bankruptcy, businesses usually retain possession and control of their assets under the supervision of a bankruptcy court.

Filing for Chapter 11 suspends all judgments, collection activities, foreclosures, and repossessions of property against the filing business.

4.5 billion passengers

As governments around the world imposed lockdowns and restricted cross-border travel to curb the spread of COVID-19, airlines were among the hardest-hit.

The International Air Transport Association (IATA) estimates airlines around the world lost about $52 billion in 2021, after incurring about $138 billion in losses in 2020.

What did PALs Chapter 11 bankruptcy process entail?

Usually, a case filed under Chapter 11 means the debtor remains in possession has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money.

As part of the process, Philippine Airlines presented the bankruptcy court a restructuring plan, which the court subsequently approved. The plan called for the following:

What were the major drivers in its exit strategy from Chapter 11 process?

There were three engines that helped it achieve successful restructuring: court approval, agreement by creditors and its ramped up operations.

First, the court approval to slash debts by more than $2 billion was pivotal to the success of its restructuring plan. It helped positioning the flag carrier for a recovery from its pandemic-induced losses.

Second, the consensual restructuring plan meant that it was accepted by 100% of the votes cast by its primary aircraft lessors and lenders, original equipment manufacturers (OEMs) and maintenance, repair, and overhaul service providers, and certain funded debt lenders.

Third, even as it was going through financial restructuring process to which stakeholders agreed its flights continued uninterrupted. It honoured tickets, vouchers and its loyalty programme (Mabuhay Miles).

As travel restrictions eased, it ramped up its operations. By the end of 2021, as travel restrictions were eased, PAL virtually emerged from its Chapter 11 bankruptcy process.

In short, the process enabled PAL to remain the flag carrier of the Philippines and the countrys premier global airline, able to sustain its 80-year history of providing the Philippines vital links to the world.

What do airlines numbers show?

On January 18, 2022, PAL filed results of its December operations in a report provided by the airlines claims agent Kurtzman Carson Consultants LLC.

It showed that four months after filing for Chapter 11 bankruptcy protection, PAL swung into profitability, with 1.7 billion pesos profit ($32.97 million) in December 2021.

It reversed a loss of $11.67 million incurred in November. Rodriguez, the airlines CFO, reported to the court that the airline had a gross income of $183.82 million for December, up 28.1% from $143.48 million earned in November.

In terms of break-down, PALs passenger revenue grew 37.7% to $132.27 million in December from $96.09 million in November, while cargo revenue declined by 4% to $42.27 million from $44.04 million previously. Ancillary revenue increased 57.5% to $6.74 million from $4.28 million in November.

When did PAL start?

PAL started nearly 81 years ago.

The flag carrier of the Philippines is the countrys only full-service network airline. PAL was the first commercial airline in Asia. It is marking its 81st anniversary next month (March 2022). It was ranked the 30th best airline in the world in 2019.

Is PAL Holdings Inc. covered by the Chapter 11 filing?

No. During restructuring, PAL has stated that business operations will continue as usual. PAL Holdings Inc., the holding company of PAL, and Air Philippines Corp, known as PAL Express, are not included in the Chapter 11 filing.

Who controls PAL?

The airline is majority-owned by a holding company, known as PAL Holdings, controlled by Filipino billionaire Lucio Tan, 87.

With a net worth of $1.9 billion (list published in September 2021), Tan emerged as PALs controlling shareholder in 1995 when he was appointed chairman. He regained control of PAL in in 2014 after buying San Miguel Corp.s controlling interest in the airline. His business empire spans banking, property, tobacco andbeverages.

Who is at the helm of the airline?

In January this year, PAL announced that its senior vice-president for operations, Capt. Stanley K. Ng, was appointed as its new president and chief operating officer (COO), in an acting or officer-in-charge capacity, replacing Gilbert F. Santa Maria.

Does that mean PAL is out of Chapter 11 process?

The airline states it had successfully completed its financial restructuring within four months. In contrast, other airlines remained in the Chapter 11 process more than a year after filing in 2020. The airline has set its sights on restoring more routes and ramp up flight frequencies as more travel restrictions are lifted.

It seeks to resume regular flights to multiple cities in mainland China, full regularisation of flights to Australia and the commencement of new services to Israel.

The company projects that it will generate an operating income of $220 million by end-2022 and $364 million in 2023.

See original here:

Philippine Airlines soars from brink of bankruptcy to profitability: how it happened - Gulf News

Welcome to your weekly update from the Allen & Overy Pensions team, covering all the latest legal and regulatory developments in the world of workplace pensions.

This week we cover topics including: Dashboards: draft rules for FCA-regulated pension providers; High Court: EU pensions protected on bankruptcy; Tribunal: no reasonable excuse for AE non-compliance; Final regulations on changes to trust registration requirements.

The Financial Conduct Authority (FCA) has published a consultation on proposed rules for personal and stakeholder pension providers on supplying information to pensions dashboards. The consultation closes on 8 April 2022. This runs alongside a government consultation on draft regulations for occupational pension schemes launched earlier this month. The FCA is aiming to publish its Policy Statement and finalised Handbook rules in autumn 2022, alongside or shortly after parliament approves the governments regulations.

Read the consultation.

The High Court has ruled that, contrary to UK legislation, rights in pension schemes recognised for tax purposes in an EU member state are protected in UK bankruptcy proceedings: Wilson and another v McNamara and others. However, the court has left this open to future challenge.

The case involved an Irish citizen made bankrupt in England, with rights in an Irish pension scheme. Under UK legislation, rights in pension schemes registered under the UK Finance Act 2004 are excluded from the assets that can be recovered on bankruptcy. The case was referred to the European Court of Justice (ECJ) to decide whether the UK legislation was contrary to EU law (it was brought before the end of the Brexit transition period). The ECJ held, in November 2021, that the exemption placed migrant workers at a particular disadvantage because, broadly, most migrant workers would have their pension rights in schemes established outside the UK which would not in general be approved for tax purposes in the UK. Therefore, it found that the UK law is indirectly discriminatory, unless it could be found to be objectively justified and proportionate. It did not rule on whether there was objective justification, but said this was a matter for the UK court.

The most recent judgment dealt with whether the UK court should consider the question of justification. Lord Justice Nugee rejected the request to consider that point, as it was not one that had been raised previously, and it was not procedurally appropriate to raise it at this stage. Therefore, he decided that the bankruptcy exemption in the UK legislation should be read as including assets in a scheme established in another member state that was recognised for tax purposes. He did however leave the door open for a future case to consider whether there was objective justification for the UK legislation being limited to schemes registered in the UK.

Read the decision.

The First-tier Tribunal has considered three cases where employers claimed that they had not received reminders from The Pensions Regulator (TPR) in relation to auto-enrolment requirements, and therefore should not have been subject to fixed penalty notices for not meeting those requirements. In each case, the Tribunal found that there was no reasonable excuse for non-compliance.

The Tribunal noted that TPR did not have to prove that documents were delivered; there is a legislative presumption that if a document has been sent to a proper address, it has been received. The employer equally did not have to prove that the documents were not received; if there is strong evidence to the contrary, the presumption can be displaced, but in these cases no evidence had been provided to support this. In any case, employers are under an obligation to comply with the auto-enrolment requirements, and even if they did not receive the reminders, they were not relieved of that duty.

Read the cases: Skewer House Taunton Ltd v TPR, Condor Estates Ltd v TPR and Total Industrial Machines Ltd v TPR

Regulations making changes to the requirements for trusts to be registered with HMRCs Trust Registration Service have now been finalised and will come into force on 9 March 2022. The regulations make changes to the time limits for registration of taxable relevant trusts and exclude certain express trusts from the requirement to register (registered pension schemes are already excluded from needing to register). The exclusions now cover, for example, both a trust holding a life policy and a trust of the benefits payable under that policy, as well as the trust of a bank account holding funds for a minor.

Read the regulations.

The programme for our next Pensions Academy Online (an update on issues for pension schemes and the people who run them) is now available. Please see the list below.

Date Topic

7 March Money laundering and proceeds of crime what trustees need to know

8 March Pension Schemes Act 2021: new offences and notifiable events where are we now?

9 March Handling an investigation

10 March Legal update including transfers, dashboards, single code, superfunds and more

11 March Climate change governance and reporting theory and practice

Click here for more information or to register.

Continue reading here:

Pensions: what's new this week February 2022 # 3 | Allen & Overy LLP - JDSupra - JD Supra

NEW YORK, Feb. 21, 2022 (GLOBE NEWSWIRE) -- A flurry of bankruptcy filings from senior-focused health care facilities has shaped the U.S. economic distress in the fourth quarter of 2021, which is detailed in the newest Polsinelli-TrBK Distress Indices Report.

The report, released today by Am Law 100 firm Polsinelli, explains how senior living-focused organizations, independent/assisted living communities and skilled nursing facilities represent a significant portion of the health care bankruptcy filings as health care begins its return to pre-pandemic numbers. These health care facilities are dealing with decreased patient census, increased operating costs, and significant pressure on staffing and labor costs.

We anticipate that the bankruptcy filing numbers will continue to increase, especially in the health care and real estate industries, as we enter 2022. We havent seen the end of COVID-19 yet and the massive federal assistance that has kept facilities afloat will end soon, said Polsinelli Shareholder Jeremy Johnson, a bankruptcy and restructuring attorney and co-author of the report.

The Polsinelli-TrBK Distress Indices are the backbone of a quarterly research report series that uses Chapter 11 filing data bankruptcies with more than $1 million in assets as a proxy for measuring financial distress in the overall U.S. economy and breakdowns of distress specifically in the real estate and health care services sectors.It is the only current measurement that tracks both Main Street and Wall Street statistics.

Other significant updates in the report include:

The Polsinelli-TrBK Distress Indices track the increase or decrease in all Chapter 11 filings with more than $1 million in assets since the fourth quarter of 2010. Unlike the public markets, the Polsinelli-TrBK Distress Indices include both public and private companies, creating a broader economic view and one that may show developing trends on Main Street before they appear on Wall Street.

To access the full report, graphs and all past analyses, visitwww.distressindex.com.

About Polsinelli

Polsinelli is an Am Law 100 firm with 950 attorneys in 21 offices nationwide. Recognized by legal research firm BTI Consulting as one of the top firms for excellent client service and client relationships, the firms attorneys provide value through practical legal counsel infused with business insight, and focus on health care, financial services, real estate, intellectual property, middle-market corporate, labor and employment and business litigation. Polsinelli PC, Polsinelli LLP in California.

More here:

Senior Living Drives Health Care Industry Distress in Final Quarter of 2021 - GlobeNewswire