Port Finance Investment Ltd, Re

Port Finance Investment Ltd, Re

The court held that it is appropriate to convene a meeting with a single class of Scheme Creditors, as all have the same rights against the Scheme Company and the Consent Fee, Cash Option, and Advisers' Fees do not require subdivision of the class. Jurisdictional and class issues raised by the artificial structure and third-party releases are to be determined at the sanction hearing.

Parties
Applicant/scheme Company: Port Finance Investment Limited
Jurisdiction
England and Wales
Judgment Date
23 February 2021
Procedural Posture
Scheme of Arrangement Under Part 26 Companies Act 2006 / Convening Hearing Judgment
Outcome
Order made to convene a meeting of Scheme Creditors with a single class.
Legal Topics
Schemes of Arrangement, Jurisdiction, Class Composition, Creditor Rights, Advisers' Fees, Consent Fee, Cash Option
Corporate Insolvency Restructuring Schemes of Arrangement Jurisdiction Class Composition Creditor Rights Advisers' Fees Consent Fee +1 more

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Parties

Port Finance Investment Limited

Applicant/scheme Company

Procedural Posture

Scheme of Arrangement Under Part 26 Companies Act 2006 / Convening Hearing Judgment

Legal Issues

  1. 1 Whether the Scheme Company is a company for purposes of Part 26
  2. 2 Whether there is a compromise or arrangement between the Scheme Company and its creditors
  3. 3 Whether it is permissible to vary rights that Scheme Creditors have against persons other than the Scheme Company

Ratio Decidendi

The court held that it is appropriate to convene a meeting with a single class of Scheme Creditors, as all have the same rights against the Scheme Company and the Consent Fee, Cash Option, and Advisers' Fees do not require subdivision of the class. Jurisdictional and class issues raised by the artificial structure and third-party releases are to be determined at the sanction hearing.

Court Disposition

Order made to convene a meeting of Scheme Creditors with a single class.

Orders

  • Scheme Company to convene a meeting of Scheme Creditors virtually by webinar.
  • Scheme documentation to be sent to Noteholders.