IN THE MATTER OF ALL SCHEME LTD

IN THE MATTER OF ALL SCHEME LTD

The New Business Scheme was sanctioned because it met all statutory requirements, was fairly represented, provided the best available outcome for creditors compared to administration, and was reasonable for an honest and intelligent creditor to approve. The scheme structure and conditionality were commercially justified and legally permissible. Shareholder objections were not legally relevant given insolvency and creditor priority.

Parties
Applicant Company: ALL Scheme Limited; Subsidiary: Amigo Loans Ltd; Holding Company: Amigo Holdings PLC; Sister Company: Amigo Management Services Limited; Scheme Creditor: Financial Ombudsman Service; Regulator: Financial Conduct Authority; Customer Advocate: Jonathan Yorke
Jurisdiction
England and Wales
Judgment Date
30 May 2022
Procedural Posture
Scheme of Arrangement / Sanction Hearing
Outcome
Scheme sanctioned
Legal Topics
Schemes of Arrangement, Creditor Rights, Shareholder Dilution, Administration Comparator, Consumer Redress
Insolvency Company Law Schemes of Arrangement Creditor Rights Shareholder Dilution Administration Comparator Consumer Redress

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Parties

ALL Scheme Limited

Applicant Company

Amigo Loans Ltd

Subsidiary

Amigo Holdings PLC

Holding Company

Amigo Management Services Limited

Sister Company

Financial Ombudsman Service

Scheme Creditor

Financial Conduct Authority

Regulator

Jonathan Yorke

Customer Advocate

Procedural Posture

Scheme of Arrangement / Sanction Hearing

Legal Issues

  1. 1 Whether the scheme of arrangement under Part 26 Companies Act 2006 should be sanctioned
  2. 2 Whether the statutory requirements for convening and approving the scheme were met
  3. 3 Whether the scheme is fair to creditors and shareholders

Ratio Decidendi

The New Business Scheme was sanctioned because it met all statutory requirements, was fairly represented, provided the best available outcome for creditors compared to administration, and was reasonable for an honest and intelligent creditor to approve. The scheme structure and conditionality were commercially justified and legally permissible. Shareholder objections were not legally relevant given insolvency and creditor priority.

Court Disposition

Scheme sanctioned

Orders

  • Sanction of New Business Scheme under Part 26 Companies Act 2006
  • SchemeCo to implement scheme as outlined