Cape Plc & Ors, Re Companies Act 1985 [2006] EWHC 1446 (Ch) (16 June 2006)

Cape Plc & Ors, Re Companies Act 1985 [2006] EWHC 1446 (Ch) (16 June 2006)

The scheme of arrangement is fair and reasonable, was properly approved by the requisite majorities of creditors, and includes adequate safeguards for future amendments. The inclusion of amendment provisions is justified given the long-term nature of asbestos claims and the need for flexibility. The turnout and...

Source-derived case information.

Citation
[2006] EWHC 1446 (Ch)
Parties
Applicant: Cape plc; Applicant: Thirteen subsidiaries of Cape plc
Jurisdiction
England and Wales
Judgment Date
16 June 2006
Procedural Posture
Scheme of Arrangement Under Companies Act 1985 S.425 / Application for Sanction of Scheme After Creditors' Meetings
Outcome
Scheme sanctioned for all applicant companies except Altitude Scaffolding Limited.
Legal Topics
Scheme of Arrangement, Asbestos Related Claims, Creditors' Rights, Solvent Companies, Future Claims, Class Composition, Court Sanction of Schemes
Company Law Insolvency Law Scheme of Arrangement Asbestos Related Claims Creditors' Rights Solvent Companies Future Claims Class Composition +1 more

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Parties

Cape plc

Applicant

Thirteen subsidiaries of Cape plc

Applicant

Procedural Posture

Scheme of Arrangement Under Companies Act 1985 S.425 / Application for Sanction of Scheme After Creditors' Meetings

Legal Issues

  1. 1 Whether the scheme of arrangement should be sanctioned under section 425 of the Companies Act 1985
  2. 2 Whether the classes of creditors were properly constituted and represented
  3. 3 Whether the scheme is fair and reasonable to creditors, including future claimants

Ratio Decidendi

The scheme of arrangement is fair and reasonable, was properly approved by the requisite majorities of creditors, and includes adequate safeguards for future amendments. The inclusion of amendment provisions is justified given the long-term nature of asbestos claims and the need for flexibility. The turnout and representation at meetings were sufficient, and no valid objection was raised. The scheme is sanctioned for all applicant companies except Altitude Scaffolding Limited.

Court Disposition

Scheme sanctioned for all applicant companies except Altitude Scaffolding Limited.

Orders

  • Scheme of arrangement under section 425 of the Companies Act 1985 sanctioned for Cape plc and relevant subsidiaries.
  • Scheme not sanctioned for Altitude Scaffolding Limited.