Indah Kiat International Finance Company B.V., Re The Companies Act 2006 [2016] EWHC 246 (Ch) (12 February 2016)

Indah Kiat International Finance Company B.V., Re The Companies Act 2006 [2016] EWHC 246 (Ch) (12 February 2016)

The court adjourned the convening hearing because notice to scheme creditors was inadequate for a complex, cross-border scheme, and because the evidence and explanatory statement provided by the Scheme Company were materially deficient, particularly regarding the independence and role of the Supporting Creditor. The court found no urgency justifying abridged notice and required full and frank disclosure before proceeding.

Citation
[2016] EWHC 246 (Ch)
Parties
Applicant/scheme Company: Indah Kiat International Finance Company B. V.; Respondent/objector/scheme Creditor: APP Investment Opportunity LLC
Jurisdiction
England and Wales
Judgment Date
12 February 2016
Procedural Posture
Scheme of Arrangement (companies Act 2006, Part 26) / Application to Convene Creditors' Meeting (convening Hearing)
Outcome
Application adjourned; no order convening meeting made.
Legal Topics
Schemes of Arrangement, Jurisdiction, Notice to Creditors, Class Composition, Disclosure Obligations, Recognition of Foreign Judgments
Company Law Insolvency Law Cross Border Insolvency Schemes of Arrangement Jurisdiction Notice to Creditors Class Composition Disclosure Obligations +1 more

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Parties

Indah Kiat International Finance Company B. V.

Applicant/scheme Company

APP Investment Opportunity LLC

Respondent/objector/scheme Creditor

Procedural Posture

Scheme of Arrangement (companies Act 2006, Part 26) / Application to Convene Creditors' Meeting (convening Hearing)

Legal Issues

  1. 1 Whether adequate notice was given to scheme creditors for the convening hearing
  2. 2 Whether the evidence and disclosure by the Scheme Company are sufficient and compliant
  3. 3 Whether the proposed class composition for the scheme meeting is appropriate

Ratio Decidendi

The court adjourned the convening hearing because notice to scheme creditors was inadequate for a complex, cross-border scheme, and because the evidence and explanatory statement provided by the Scheme Company were materially deficient, particularly regarding the independence and role of the Supporting Creditor. The court found no urgency justifying abridged notice and required full and frank disclosure before proceeding.

Court Disposition

Application adjourned; no order convening meeting made.

Orders

  • Convening hearing adjourned for at least 6 weeks from 21 January 2016 to allow proper notice to be given to scheme creditors and for deficiencies in evidence and explanatory statement to be addressed.