Semple Fraser involved in ground-breaking legal case
Solvent scheme of arrangement: Scottish Court rules in favour of creditor democracy
A ground-breaking legal case came to a conclusion at the beginning of September, when the Court of Session in Scotland ruled that a company proposing a solvent scheme of arrangement with its creditors must, as part of the usual preparations for the creditors' meeting, provide each creditor with a list of the names and contact details of the other creditors.
The Judge explained that such information was essential if creditors were to be given a genuine opportunity to discuss the company's proposals with each other prior to the meeting.
In the past, only the company proposing the scheme was able to contact the creditors affected. However, with the provision of the names and addresses of the other creditors, policyholders are able to discuss the proposal among themselves.
The decision, which was contested by the scheme company, Scottish Lion Insurance Company, may have significant implications for companies proposing such schemes in the future and for the policyholders affected by them.
Semple Fraser LLP acted as the Scottish agent for the applicant creditor.
London based law firm Kendall Freeman also acted for the creditor.
FOR FURTHER INFORMATION PLEASE CONTACT: JENNIFER ANTONELLI
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