Vodafone Group Plc, Re Companies Act 2006

Vodafone Group Plc, Re Companies Act 2006

The court was satisfied, based on conservative cash flow forecasts, working capital statements, creditor profile, and market evidence, that no creditor could demonstrate a real likelihood of prejudice from the capital reduction. Therefore, it was appropriate to sanction the scheme and dispense with settlement of a...

Source-derived case information.

Parties
Claimant: Vodafone Group Plc; Respondent: Verizon Communications Inc.
Jurisdiction
England and Wales
Judgment Date
01 May 2014
Procedural Posture
Scheme of Arrangement and Capital Reduction / Judgment on Sanction and Confirmation
Outcome
Scheme of arrangement sanctioned; reductions of capital confirmed; settlement of list of creditors dispensed with.
Legal Topics
Scheme of Arrangement, Capital Reduction, Creditor Protection, Shareholder Returns
Company Law Corporate Finance Scheme of Arrangement Capital Reduction Creditor Protection Shareholder Returns

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Parties

Vodafone Group Plc

Claimant

Verizon Communications Inc.

Respondent

Procedural Posture

Scheme of Arrangement and Capital Reduction / Judgment on Sanction and Confirmation

Legal Issues

  1. 1 Whether the court should sanction the scheme of arrangement under sections 895-899 of the Companies Act 2006
  2. 2 Whether the court should confirm reductions of capital and dispense with settlement of a list of creditors under section 646 of the Companies Act 2006

Ratio Decidendi

The court was satisfied, based on conservative cash flow forecasts, working capital statements, creditor profile, and market evidence, that no creditor could demonstrate a real likelihood of prejudice from the capital reduction. Therefore, it was appropriate to sanction the scheme and dispense with settlement of a list of creditors.

Court Disposition

Scheme of arrangement sanctioned; reductions of capital confirmed; settlement of list of creditors dispensed with.

Orders

  • Scheme of arrangement between Vodafone Group Plc and its shareholders sanctioned under sections 895-899 of the Companies Act 2006.
  • Reductions of capital contained in the scheme confirmed.