Hearn & Anor v Bell

The Trustee's decision to accept the Alternate Payout option under the Plan is reasonable, based on expert advice and consideration of all relevant factors, and is not open to challenge. The Court grants the directions sought.

Parties: Claimant: Ann Hearn; Claimant: Champion Pensions Limited; Defendant: Barry Stephen Bell
Jurisdiction: England and Wales
Judgment Date: 03 December 2004
Procedural Posture: Application for Directions / Judgment
Outcome: Directions granted; Trustee entitled to vote in favour of the Plan and accept the Alternate Payout option.
Legal Topics: Scheme of Arrangement, Chapter 11 Bankruptcy, Trustee Discretion, Pension Scheme Funding, Statutory Liability, Compromise of Claims

Pensions Insolvency Trusts Scheme of Arrangement Chapter 11 Bankruptcy Trustee Discretion Pension Scheme Funding Statutory Liability +1 more

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Parties

Ann Hearn

Claimant

Champion Pensions Limited

Claimant

Barry Stephen Bell

Defendant

Procedural Posture

Application for Directions / Judgment

Legal Issues

1 Whether the Trustees of the Champion Pension Scheme should vote in favour of the Third Amended Joint Plan of Reorganisation and accept the Alternate Payout option
2 Whether the exercise of discretion by the independent trustee is reasonable and proper

Ratio Decidendi

Court Disposition

Directions granted; Trustee entitled to vote in favour of the Plan and accept the Alternate Payout option.

Orders

Trustee may vote in favour of the Plan and give the undertaking to support a scheme of arrangement or CVA for FMI.
Trustee may accept the Alternate Payout option under section 3.7.3(b) of the Plan.