Lehman Brothers, Re

Lehman Brothers, Re

The statutory preconditions for jurisdiction under Part 26 Companies Act 2006 have been satisfied, class meetings were properly constituted and fairly represented, the scheme is fair and reasonable for creditors, and the adjudication process is not so unfair as to require withholding sanction. The scheme should be sanctioned.

Parties
Subject Company: Lehman Brothers International (Europe) (In Administration); Applicant: Wentworth; Respondent: The Administrators; Interested Party: LB Holdings Intermediate 2 Limited (In Administration) and its Administrators; Interested Party: Senior Creditors Group
Jurisdiction
England and Wales
Judgment Date
18 June 2018
Procedural Posture
Company Scheme of Arrangement / Sanction Hearing
Outcome
scheme sanctioned
Legal Topics
Scheme of Arrangement, Class Composition, Creditor Voting, Administration, International Recognition
Company Law Insolvency Scheme of Arrangement Class Composition Creditor Voting Administration International Recognition

Case Brief

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Parties

Lehman Brothers International (Europe) (In Administration)

Subject Company

Wentworth

Applicant

The Administrators

Respondent

LB Holdings Intermediate 2 Limited (In Administration) and its Administrators

Interested Party

Senior Creditors Group

Interested Party

Procedural Posture

Company Scheme of Arrangement / Sanction Hearing

Legal Issues

  1. 1 Whether the statutory requirements for sanctioning a scheme of arrangement under Part 26 of the Companies Act 2006 have been satisfied
  2. 2 Whether class meetings were properly constituted and fairly represented
  3. 3 Whether the scheme is fair to all creditor classes

Ratio Decidendi

The statutory preconditions for jurisdiction under Part 26 Companies Act 2006 have been satisfied, class meetings were properly constituted and fairly represented, the scheme is fair and reasonable for creditors, and the adjudication process is not so unfair as to require withholding sanction. The scheme should be sanctioned.

Court Disposition

scheme sanctioned

Orders

  • The scheme of arrangement is sanctioned.
  • Further judgment to be handed down with full reasons.