Link Fund Solutions Limited, Re

Link Fund Solutions Limited, Re

The court sanctioned the scheme because all statutory and procedural requirements were met, the class of creditors was fairly represented and acted bona fide, the Explanatory Statement was sufficient, and the scheme was one that an intelligent and honest creditor could reasonably approve. The loss of FSCS and FOS rights was a permissible consequence of the compromise, not a 'blot', and the settlement fund and releases were justified. The overwhelming majority vote in favour of the scheme should be respected.

Parties
Applicant: Link Fund Solutions Limited; Respondent/regulator: Financial Conduct Authority; Investor Advocate: Investor Advocate; Objectors: Certain Objecting Creditors; Objector: Transparency Task Force Limited; Objecting Creditors (in Person): Cliff Weight, Anthony Etkind, Alan Pyatt, Karen Baldwin, Graham Dickenson
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Scheme of Arrangement (companies Act 2006) / Sanction Hearing and Final Judgment
Outcome
Scheme sanctioned
Legal Topics
Scheme of Arrangement, Creditors' Rights, Financial Services Compensation Scheme, Financial Ombudsman Service, Court's Discretion to Sanction, Investor Protection
Company Law Insolvency Law Financial Regulation Scheme of Arrangement Creditors' Rights Financial Services Compensation Scheme Financial Ombudsman Service Court's Discretion to Sanction +1 more

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Parties

Link Fund Solutions Limited

Applicant

Financial Conduct Authority

Respondent/regulator

Investor Advocate

Investor Advocate

Certain Objecting Creditors

Objectors

Transparency Task Force Limited

Objector

Cliff Weight, Anthony Etkind, Alan Pyatt, Karen Baldwin, Graham Dickenson

Objecting Creditors (in Person)

Procedural Posture

Scheme of Arrangement (companies Act 2006) / Sanction Hearing and Final Judgment

Legal Issues

  1. 1 Whether the court should sanction the proposed scheme of arrangement under Part 26 of the Companies Act 2006 for Link Fund Solutions Limited
  2. 2 Whether the scheme impermissibly or inappropriately deprives creditors of rights under the FSCS and FOS
  3. 3 Whether the Explanatory Statement was fair, accurate, and sufficient

Ratio Decidendi

The court sanctioned the scheme because all statutory and procedural requirements were met, the class of creditors was fairly represented and acted bona fide, the Explanatory Statement was sufficient, and the scheme was one that an intelligent and honest creditor could reasonably approve. The loss of FSCS and FOS rights was a permissible consequence of the compromise, not a 'blot', and the settlement fund and releases were justified. The overwhelming majority vote in favour of the scheme should be respected.

Court Disposition

Scheme sanctioned

Orders

  • The scheme of arrangement under Part 26 of the Companies Act 2006 for Link Fund Solutions Limited is sanctioned.
  • The order sanctioning the scheme will not be sealed until 29 February 2024 to allow parties to digest the judgment.