Unsecured creditors can no longer request payment from a
merging/demerging company of sums that are not due and payable at
the time of the merger/demerger.
This change came into effect on 31 December 2010. It clarifies
inconsistencies in previous court practice which allowed some
creditors, depending on their rights, to request payment of such
sums within the six-month period after registration of the
merger/demerger as an alternative to seeking security for their
claim.
Unsecured creditors whose payments are not due and payable from a
merging/demerging company may now only request security and then,
if it is not provided, ask the courts to secure their claims by
measures such as distraint or injunction.
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.
The original publication date for this article was 17/02/2011.
