- Second time lucky—scheme of arrangement approved (Re Sunbird Business Services Ltd)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Restructuring & Insolvency analysis: Mr Justice Snowden described this as being ‘a most unusual, if not unique, case’. The court held that, notwithstanding significant defects in the information that had been provided to scheme creditors, there were sufficient countervailing factors that justified the sanction of the scheme. Much of the force of the objections raised by the opposing creditors was lessened by (i) the manner of the objection, (ii) the fact this was the second attempt to sanction essentially the same scheme, (iii) the apparent lack of causative effect of the defects, and (iv) as a matter of policy, the need to ensure the availability of the scheme jurisdiction to smaller and medium-sized companies. Written by Samuel Parsons, barrister, at Guildhall Chambers, Bristol.
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