In the matter of Listrac Midco Limited & Ors.

In the matter of Listrac Midco Limited & Ors.

The court is satisfied that all statutory preconditions for convening creditor meetings under Part 26A Companies Act 2006 are met. The Plan companies are in financial difficulty, the proposed plans constitute a compromise or arrangement with creditors to mitigate those difficulties, and class composition is appropriate. B shareholders' rights are not affected by the plan within the meaning of section 901C(3), and they are not entitled to a meeting. Mr Tydeman's claims do not require a separate class. The arrangements for notification and conduct of meetings are adequate.

Parties
Applicant Company: Listrac Midco Limited; Applicant Company: Listrac Bidco Limited; Applicant Company: Lifeways Finance Limited; Applicant Company: Lifeways Community Care Limited; Applicant Company: Living Ambitions Limited; Applicant Company: Autism Care (UK) Limited; Applicant Company: Vitavia Property Management Limited; Objector / Creditor: Mr Justin Tydeman
Jurisdiction
England and Wales
Judgment Date
23 January 2023
Procedural Posture
Insolvency / Restructuring (convening Hearing) / Application for Order to Convene Creditors' Meetings Under Part 26 a Companies Act 2006
Outcome
Order granted; meetings of creditors to be convened as sought by the Plan companies.
Legal Topics
Restructuring Plan, Scheme of Arrangement, Creditors' Meetings, Class Composition, Jurisdiction Under Companies Act 2006, Preferential and Unsecured Creditors, Landlord Claims, Shareholder Rights
Insolvency Law Company Law Restructuring Plan Scheme of Arrangement Creditors' Meetings Class Composition Jurisdiction Under Companies Act 2006 Preferential and Unsecured Creditors +2 more

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Parties

Listrac Midco Limited

Applicant Company

Listrac Bidco Limited

Applicant Company

Lifeways Finance Limited

Applicant Company

Lifeways Community Care Limited

Applicant Company

Living Ambitions Limited

Applicant Company

Autism Care (UK) Limited

Applicant Company

Vitavia Property Management Limited

Applicant Company

Mr Justin Tydeman

Objector / Creditor

Procedural Posture

Insolvency / Restructuring (convening Hearing) / Application for Order to Convene Creditors' Meetings Under Part 26 a Companies Act 2006

Legal Issues

  1. 1 Whether the court should order meetings of creditors under section 901C(1) Companies Act 2006 for proposed restructuring plans
  2. 2 Whether the statutory conditions for a Part 26A restructuring plan are met
  3. 3 Proper class composition for creditor meetings

Ratio Decidendi

The court is satisfied that all statutory preconditions for convening creditor meetings under Part 26A Companies Act 2006 are met. The Plan companies are in financial difficulty, the proposed plans constitute a compromise or arrangement with creditors to mitigate those difficulties, and class composition is appropriate. B shareholders' rights are not affected by the plan within the meaning of section 901C(3), and they are not entitled to a meeting. Mr Tydeman's claims do not require a separate class. The arrangements for notification and conduct of meetings are adequate.

Court Disposition

Order granted; meetings of creditors to be convened as sought by the Plan companies.

Orders

  • Meetings of creditors of each Plan company to be convened on 9 February 2023 to consider the proposed restructuring plans.
  • Voting record date set as 6 February 2023.