Marconi Corporation Plc (now Telent Limited), Re

Marconi Corporation Plc (now Telent Limited), Re

The Remainder should be distributed pari passu among all Eligible Recipients, both bondholder and non-bondholder Scheme Creditors, as this best promotes the purpose of the Schemes, preserves equality of outcome, and accords with the principle of pari passu distribution.

Parties
Applicant/supervisor: Samantha Bewick; Applicant/supervisor: Richard Heis; Eurobond Trustee: Law Debenture Trust Corporation Plc; Yankee Bond Trustee: Bank of New York Mellon; Scheme Company: Marconi Corporation Plc (now telent Limited); Scheme Company: Marconi Plc (now M (2003) Plc)
Jurisdiction
England and Wales
Judgment Date
21 February 2013
Procedural Posture
Application for Directions Under Schemes of Arrangement / Judgment on Application
Outcome
Application granted; directions issued.
Legal Topics
Schemes of Arrangement, Distribution of Trust Funds, Liquidation Principles, Bondholder Claims
Company Law Insolvency Law Trusts Schemes of Arrangement Distribution of Trust Funds Liquidation Principles Bondholder Claims

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Parties

Samantha Bewick

Applicant/supervisor

Richard Heis

Applicant/supervisor

Law Debenture Trust Corporation Plc

Eurobond Trustee

Bank of New York Mellon

Yankee Bond Trustee

Marconi Corporation Plc (now telent Limited)

Scheme Company

Marconi Plc (now M (2003) Plc)

Scheme Company

Procedural Posture

Application for Directions Under Schemes of Arrangement / Judgment on Application

Legal Issues

  1. 1 How should the residue (Remainder) of Scheme Consideration be distributed under the Schemes of Arrangement for Marconi Corporation Plc and Marconi Plc?
  2. 2 Should the Remainder be distributed among all Scheme Creditors or only among bondholders with satisfied conditions?

Ratio Decidendi

The Remainder should be distributed pari passu among all Eligible Recipients, both bondholder and non-bondholder Scheme Creditors, as this best promotes the purpose of the Schemes, preserves equality of outcome, and accords with the principle of pari passu distribution.

Court Disposition

Application granted; directions issued.

Orders

  • The Remainder shall be distributed in accordance with Option 1: pari passu among all Eligible Recipients, both bondholder and non-bondholder Scheme Creditors.