SMP Trustees Ltd, Re

SMP Trustees Ltd, Re

The court held that SMP Trustees Limited may lawfully and properly exercise its power of amendment under clause 13.1 of the Trust Deeds to enter into the controlled liquidation protocol and make consequential amendments, as such amendments are not materially prejudicial to bondholders and are in their best interests. The court approved the exercise of this power and authorised the trustee to proceed accordingly.

Parties
Claimant: SMP Trustees Limited
Jurisdiction
England and Wales
Judgment Date
27 March 2012
Procedural Posture
Trustee Directions Application / Judgment on Application for Directions and Approval of Amendments to Trust Deeds
Outcome
Application granted in part; trustee authorised to amend Trust Deeds and enter protocol; other issues adjourned.
Legal Topics
Trustee Powers, Bondholder Meetings, Amendment of Trust Deeds, Controlled Liquidation, Judicial Liquidation
Trusts Insolvency Financial Services Trustee Powers Bondholder Meetings Amendment of Trust Deeds Controlled Liquidation Judicial Liquidation

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Parties

SMP Trustees Limited

Claimant

Procedural Posture

Trustee Directions Application / Judgment on Application for Directions and Approval of Amendments to Trust Deeds

Legal Issues

  1. 1 Whether SMP Trustees Limited has power to enter into a protocol for controlled liquidation of Lifemark SA and amend the Trust Deeds accordingly
  2. 2 Whether the proposed amendments to the Trust Deeds are within the trustee's powers and not materially prejudicial to bondholders
  3. 3 Whether court approval should be granted for the trustee to proceed with the controlled liquidation proposal

Ratio Decidendi

The court held that SMP Trustees Limited may lawfully and properly exercise its power of amendment under clause 13.1 of the Trust Deeds to enter into the controlled liquidation protocol and make consequential amendments, as such amendments are not materially prejudicial to bondholders and are in their best interests. The court approved the exercise of this power and authorised the trustee to proceed accordingly.

Court Disposition

Application granted in part; trustee authorised to amend Trust Deeds and enter protocol; other issues adjourned.

Orders

  • Trustee authorised to amend Trust Deeds to enter into protocol with Lifemark liquidators for controlled liquidation.
  • Trustee authorised to make amendments to Trust Deeds regarding payment priorities, pro-rata payments, and quorum/voting requirements.