Light SA, Re

Light SA, Re

The scheme of arrangement is sanctioned because all statutory requirements are satisfied, the class was properly constituted and represented, the explanatory statement and notification process were adequate, the third-party release mechanism is justified and not a 'blot', and the scheme will be effective in Brazil, the key jurisdiction. The overwhelming creditor support further justifies sanction.

Parties
Applicant/scheme Company: Light SA - Em Recuperação Judicial; Respondents/creditors: Scheme Creditors (holders of Notes issued by Light Energia SA and Light Serviços de Eletricidade S.A.)
Jurisdiction
England and Wales
Judgment Date
11 April 2024
Procedural Posture
Scheme of Arrangement (insolvency/restructuring) / Sanction Hearing
Outcome
scheme sanctioned
Legal Topics
Scheme of Arrangement, Third Party Releases, Class Composition, Statutory Compliance, International Recognition
Insolvency Company Law Cross Border Restructuring Scheme of Arrangement Third Party Releases Class Composition Statutory Compliance International Recognition

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Parties

Light SA - Em Recuperação Judicial

Applicant/scheme Company

Scheme Creditors (holders of Notes issued by Light Energia SA and Light Serviços de Eletricidade S.A.)

Respondents/creditors

Procedural Posture

Scheme of Arrangement (insolvency/restructuring) / Sanction Hearing

Legal Issues

  1. 1 Whether the statutory requirements for sanctioning a scheme of arrangement under Part 26 Companies Act 2006 are satisfied
  2. 2 Whether class composition and creditor representation were proper
  3. 3 Whether the scheme contains any 'blot' or defect, particularly regarding third-party releases

Ratio Decidendi

The scheme of arrangement is sanctioned because all statutory requirements are satisfied, the class was properly constituted and represented, the explanatory statement and notification process were adequate, the third-party release mechanism is justified and not a 'blot', and the scheme will be effective in Brazil, the key jurisdiction. The overwhelming creditor support further justifies sanction.

Court Disposition

scheme sanctioned

Orders

  • The scheme of arrangement under Part 26 Companies Act 2006 is sanctioned as proposed by the Scheme Company.