Re T & N Ltd

Re T & N Ltd

Rules 12.10 and 12.11 of the Insolvency Rules 1986 apply to the giving of notice for CVA meetings, but rule 12.12 does not; there is no requirement for court leave to notify foreign creditors; notice to solicitors is sufficient if authority is confirmed; administrators must take all reasonable steps to notify known and potential creditors, and a longer notice period is appropriate given the complexity of the proposals.

Parties
Administrators: T&N Limited and others; Respondents/us Plan Proponents: Federal Mogul Corporation and its affiliates, Official Committees of Unsecured Creditors and of Equity Security Holders, JP Morgan Chase Bank
Jurisdiction
England and Wales
Judgment Date
12 April 2006
Procedural Posture
Insolvency/administration / Application for Directions Regarding Notice and Procedure for Creditors' Meetings in Proposed Cvas
Outcome
Directions granted as sought, subject to hearing on precise terms.
Legal Topics
Creditors' Voluntary Arrangements (cvas), Notice Requirements, Service of Documents, Cross Border Insolvency, Schemes of Arrangement
Insolvency Company Law Creditors' Voluntary Arrangements (cvas) Notice Requirements Service of Documents Cross Border Insolvency Schemes of Arrangement

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Parties

T&N Limited and others

Administrators

Federal Mogul Corporation and its affiliates, Official Committees of Unsecured Creditors and of Equity Security Holders, JP Morgan Chase Bank

Respondents/us Plan Proponents

Procedural Posture

Insolvency/administration / Application for Directions Regarding Notice and Procedure for Creditors' Meetings in Proposed Cvas

Legal Issues

  1. 1 Whether rules 12.10, 12.11, and 12.12 of the Insolvency Rules 1986 apply to notices of meetings for CVAs
  2. 2 Whether notice of CVA meetings must be given to foreign creditors with leave of the court
  3. 3 Whether notice to solicitors is sufficient where claimants have instructed them

Ratio Decidendi

Rules 12.10 and 12.11 of the Insolvency Rules 1986 apply to the giving of notice for CVA meetings, but rule 12.12 does not; there is no requirement for court leave to notify foreign creditors; notice to solicitors is sufficient if authority is confirmed; administrators must take all reasonable steps to notify known and potential creditors, and a longer notice period is appropriate given the complexity of the proposals.

Court Disposition

Directions granted as sought, subject to hearing on precise terms.

Orders

  • Administrators may give notice of CVA meetings to creditors and their solicitors as set out.
  • No requirement for court leave to notify foreign creditors.