Petra Diamonds US$ Treasury Plc, Re [2020] EWHC 3565 (Ch) (09 December 2020)

Petra Diamonds US$ Treasury Plc, Re [2020] EWHC 3565 (Ch) (09 December 2020)

The scheme creditors (holders of Existing Notes) have sufficiently similar rights to meet as a single class; features such as new money provisions, lock-up agreements, fees, adviser payments, and nomination rights do not fracture the class; the court has jurisdiction over the company and scheme creditors; notification and arrangements for the meeting are adequate; there is no obvious roadblock to the scheme.

Citation
[2020] EWHC 3565 (Ch)
Parties
Claimant: Petra Diamonds US$ Treasury PLC
Jurisdiction
England and Wales
Judgment Date
09 December 2020
Procedural Posture
Scheme of Arrangement Under Part 26 Companies Act 2006 / Application for Convening Order
Outcome
Convening order granted
Legal Topics
Scheme of Arrangement, Class Composition, Jurisdiction, Creditor Rights
Corporate Insolvency Company Law Scheme of Arrangement Class Composition Jurisdiction Creditor Rights

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Parties

Petra Diamonds US$ Treasury PLC

Claimant

Procedural Posture

Scheme of Arrangement Under Part 26 Companies Act 2006 / Application for Convening Order

Legal Issues

  1. 1 Whether a meeting of holders of Existing Notes should be convened to consider the proposed scheme of arrangement
  2. 2 Whether class composition is appropriate for a single meeting
  3. 3 Whether any features of the scheme fracture the class

Ratio Decidendi

The scheme creditors (holders of Existing Notes) have sufficiently similar rights to meet as a single class; features such as new money provisions, lock-up agreements, fees, adviser payments, and nomination rights do not fracture the class; the court has jurisdiction over the company and scheme creditors; notification and arrangements for the meeting are adequate; there is no obvious roadblock to the scheme.

Court Disposition

Convening order granted

Orders

  • Meeting of holders of Existing Notes to be convened on 8 January 2021
  • Restriction upon access to confidential material approved