OQ Chemicals Holding Drei GmbH & Anor, Re

OQ Chemicals Holding Drei GmbH & Anor, Re

The court is satisfied that the schemes constitute a compromise or arrangement, that there is jurisdiction to convene the meetings, that class composition is appropriate for a single meeting, that sufficient notice has been given, and that there are no roadblocks to effectiveness. Therefore, the convening order is granted as sought.

Parties
Applicant / German Borrower: OQ Chemicals Holding Drei GmbH; Applicant / US Borrower: OQ Chemicals Corporation; Respondent / Scheme Creditors: Ad Hoc Group of Lenders
Jurisdiction
England and Wales
Judgment Date
31 July 2024
Procedural Posture
Scheme of Arrangement (companies Act 2006) / Convening Hearing for Creditors' Meeting
Outcome
Application granted
Legal Topics
Schemes of Arrangement, Jurisdiction, Class Composition, Creditors' Rights, International Recognition
Insolvency Company Law Banking and Finance Schemes of Arrangement Jurisdiction Class Composition Creditors' Rights International Recognition

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Parties

OQ Chemicals Holding Drei GmbH

Applicant / German Borrower

OQ Chemicals Corporation

Applicant / US Borrower

Ad Hoc Group of Lenders

Respondent / Scheme Creditors

Procedural Posture

Scheme of Arrangement (companies Act 2006) / Convening Hearing for Creditors' Meeting

Legal Issues

  1. 1 Whether to convene a single meeting of scheme creditors for two inter-conditional schemes of arrangement under Part 26 of the Companies Act 2006
  2. 2 Whether the court has jurisdiction to sanction the schemes
  3. 3 Whether the class composition is appropriate given the differences in creditors' rights

Ratio Decidendi

The court is satisfied that the schemes constitute a compromise or arrangement, that there is jurisdiction to convene the meetings, that class composition is appropriate for a single meeting, that sufficient notice has been given, and that there are no roadblocks to effectiveness. Therefore, the convening order is granted as sought.

Court Disposition

Application granted

Orders

  • A single meeting of scheme creditors for each company is to be convened to consider and, if thought fit, approve the schemes of arrangement.
  • Directions for the meetings to be held remotely are approved.