La Seda De Barcelona SA, Re

La Seda De Barcelona SA, Re

The court has jurisdiction to sanction the scheme for a foreign company where the debt is governed by English law and the creditors' meeting was properly convened and approved the scheme. The release of Artenius, a non-party, is lawful as it is ancillary to the arrangement and involves reciprocal benefit, satisfying the statutory requirements.

Parties
Applicant Company: La Seda De Barcelona SA; Guarantor (non Party): Artenius UK Limited
Jurisdiction
England and Wales
Judgment Date
26 May 2010
Procedural Posture
Scheme of Arrangement (companies Act 2006, S.899) / Sanction Hearing
Outcome
Scheme sanctioned
Legal Topics
Scheme of Arrangement, Jurisdiction Over Foreign Companies, Release of Third Party Liabilities, Creditors' Meetings, Statutory Compliance
Insolvency Law Company Law Scheme of Arrangement Jurisdiction Over Foreign Companies Release of Third Party Liabilities Creditors' Meetings Statutory Compliance

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Parties

La Seda De Barcelona SA

Applicant Company

Artenius UK Limited

Guarantor (non Party)

Procedural Posture

Scheme of Arrangement (companies Act 2006, S.899) / Sanction Hearing

Legal Issues

  1. 1 Whether the court has jurisdiction to sanction a scheme of arrangement for a foreign company
  2. 2 Whether statutory requirements for convening and conducting the creditors' meeting were met
  3. 3 Whether the scheme can lawfully provide for the release of a non-party's (Artenius) liabilities

Ratio Decidendi

The court has jurisdiction to sanction the scheme for a foreign company where the debt is governed by English law and the creditors' meeting was properly convened and approved the scheme. The release of Artenius, a non-party, is lawful as it is ancillary to the arrangement and involves reciprocal benefit, satisfying the statutory requirements.

Court Disposition

Scheme sanctioned

Orders

  • Scheme of arrangement approved and sanctioned under section 899 of the Companies Act 2006