Selecta Finance UK Ltd, Re

Selecta Finance UK Ltd, Re

The Court held that sufficient notice was given, it has jurisdiction under Part 26 of the Companies Act 2006 and the Recast Judgments Regulation, all Scheme Creditors form a single class, and Lock-Up Fees, advisers' fees, and other minor differences do not fracture the class. The meeting may be convened virtually, and ancillary orders are appropriate.

Parties
Applicant/company: Selecta Finance UK Limited; Respondents/creditors: Scheme Creditors (SSN Holders)
Jurisdiction
England and Wales
Judgment Date
14 October 2020
Procedural Posture
Scheme of Arrangement (companies Act 2006, Part 26) / Application for Convening Creditors' Meeting
Outcome
Application granted
Legal Topics
Schemes of Arrangement, Jurisdiction, Class Composition, Notice Requirements, Lock Up Fees, Cross Border Insolvency
Insolvency Law Company Law Schemes of Arrangement Jurisdiction Class Composition Notice Requirements Lock Up Fees Cross Border Insolvency

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Parties

Selecta Finance UK Limited

Applicant/company

Scheme Creditors (SSN Holders)

Respondents/creditors

Procedural Posture

Scheme of Arrangement (companies Act 2006, Part 26) / Application for Convening Creditors' Meeting

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 of the 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 Part 26 of the Companies Act 2006 and the Recast Judgments Regulation, all Scheme Creditors form a single class, and Lock-Up Fees, advisers' fees, and other minor differences do not fracture the class. The meeting may be convened virtually, and ancillary orders are appropriate.

Court Disposition

Application granted

Orders

  • Order convening a single meeting of Scheme Creditors to consider the Scheme
  • Declaration that Mr Schneiter is validly appointed as the Company's foreign representative for US Chapter 15 recognition