Selecta Finance UK Ltd, Re [2020] EWHC 2689 (Ch) (14 October 2020)

Selecta Finance UK Ltd, Re [2020] EWHC 2689 (Ch) (14 October 2020)

The Court held that sufficient notice was given, it has jurisdiction under both the Companies Act 2006 and the Recast Judgments Regulation, all Scheme Creditors form a single class for voting, and the proposed directions for the Scheme meeting are appropriate. The Lock-Up Fee and advisers' fees do not fracture the class. The application to convene a single meeting of Scheme Creditors was granted.

Citation
[2020] EWHC 2689 (Ch)
Parties
Applicant/company: Selecta Finance UK Limited
Jurisdiction
England and Wales
Judgment Date
14 October 2020
Procedural Posture
Scheme of Arrangement Under Part 26 Companies Act 2006 / Application for Convening Meeting of Creditors
Outcome
Application granted
Legal Topics
Schemes of Arrangement, Jurisdiction, Class Composition of Creditors, Lock Up Agreements, Cross Border Insolvency
Insolvency Law Company Law Schemes of Arrangement Jurisdiction Class Composition of Creditors Lock Up Agreements Cross Border Insolvency

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Parties

Selecta Finance UK Limited

Applicant/company

Procedural Posture

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

Legal Issues

  1. 1 Whether sufficient notice was given to Scheme Creditors for the convening hearing
  2. 2 Whether the Court has jurisdiction to sanction the Scheme under Part 26 Companies Act 2006 and the Recast Judgments Regulation
  3. 3 Whether Scheme Creditors constitute a single class for voting purposes

Ratio Decidendi

The Court held that sufficient notice was given, it has jurisdiction under both the Companies Act 2006 and the Recast Judgments Regulation, all Scheme Creditors form a single class for voting, and the proposed directions for the Scheme meeting are appropriate. The Lock-Up Fee and advisers' fees do not fracture the class. The application to convene a single meeting of Scheme Creditors was granted.

Court Disposition

Application granted

Orders

  • Order convening a single meeting of Scheme Creditors for 21 October 2020, to be held virtually
  • Declaration that Mr Schneiter is validly appointed as the Company's foreign representative for US Chapter 15 recognition