Amicus Finance Plc, Re (Convening judgment) [2021] EWHC 2255 (Ch) (09 August 2021)

Amicus Finance Plc, Re (Convening judgment) [2021] EWHC 2255 (Ch) (09 August 2021)

The court held that the threshold conditions for proposing a restructuring plan under Part 26A Companies Act 2006 were satisfied, as Amicus was cashflow insolvent and the plan was intended to address its financial difficulties. The proposed class composition was not appropriate as originally drafted; instead, Crowdstacker and HGTL Securitisation should form a single class for their senior secured claims up to the value of Crowdstacker's debt, with HGTL Securitisation's junior debt forming a separate class. The explanatory statement, as amended, was sufficient to enable creditors to make an informed decision. The court ordered the convening of creditor meetings in accordance with the...

Citation
[2021] EWHC 2255 (Ch)
Parties
Applicant: Amicus Finance plc (in administration); Respondent/objector: Crowdstacker Corporate Services Limited; Supporting Creditor: HGTL Securitisation Company Limited and the Hartford Entities
Jurisdiction
England and Wales
Judgment Date
09 August 2021
Procedural Posture
Insolvency/restructuring Plan Application / Convening Hearing for Creditor Meetings Under Part 26 a Companies Act 2006
Outcome
Application granted in part
Legal Topics
Restructuring Plan, Class Composition, Creditor Meetings, Administration, Liquidation Alternative, Notice Requirements
Insolvency Law Company Law Restructuring Plan Class Composition Creditor Meetings Administration Liquidation Alternative Notice Requirements

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Parties

Amicus Finance plc (in administration)

Applicant

Crowdstacker Corporate Services Limited

Respondent/objector

HGTL Securitisation Company Limited and the Hartford Entities

Supporting Creditor

Procedural Posture

Insolvency/restructuring Plan Application / Convening Hearing for Creditor Meetings Under Part 26 a Companies Act 2006

Legal Issues

  1. 1 Whether to convene meetings of creditors for approval of a restructuring plan under Part 26A Companies Act 2006
  2. 2 Whether the proposed classes of creditors for voting are appropriate
  3. 3 Whether the explanatory statement and plan documentation are adequate

Ratio Decidendi

The court held that the threshold conditions for proposing a restructuring plan under Part 26A Companies Act 2006 were satisfied, as Amicus was cashflow insolvent and the plan was intended to address its financial difficulties. The proposed class composition was not appropriate as originally drafted; instead, Crowdstacker and HGTL Securitisation should form a single class for their senior secured claims up to the value of Crowdstacker's debt, with HGTL Securitisation's junior debt forming a separate class. The explanatory statement, as amended, was sufficient to enable creditors to make an informed decision. The court ordered the convening of creditor meetings in accordance with the...

Court Disposition

Application granted in part

Orders

  • Order convening meetings of creditors in accordance with revised class structure: (1) Expense Creditors (excluding Hartford Growth), (2) Preferential Creditors, (3) Unsecured Creditors, (4) Secured Creditors (Crowdstacker and HGTL Securitisation up to Crowdstacker's debt), (5) Secured Creditors (HGTL Securitisation...
  • Directions for service and notice as set out in the judgment