Update – Announcement of proposed scheme of arrangement, pursuant to Part 26 of the Companies Act 2006, for a full and final settlement in respect of surplus entitlements and the payment of statutory interest – filing of Chapter 15 petition and update to the expected effective date of the scheme – 18 May 2018

Further to the announcement on 14 May 2018, a copy of which can be accessed here, on 14 May 2018 the Joint Administrators filed a petition for recognition of LBIE’s proposed scheme of arrangement under Chapter 15 of the United States Bankruptcy Code with the United States Bankruptcy Court for the Southern District of New York.

As explained in paragraph 16 of Part I of the Explanatory Statement, a copy of which can be accessed here, Chapter 15 recognition of the scheme as a “foreign main proceeding” will give the scheme full force and effect in the United States and prevent any party to the scheme from commencing or continuing any action or proceeding in the United States against LBIE, or its assets located in the United States, that is inconsistent with the scheme. 

The Bankruptcy Court has now scheduled a hearing to consider the Chapter 15 petition which will commence at 10.00 am (Eastern time) on 19 June 2018 in Room 623 of the United States Bankruptcy Court for the Southern District of New York, One Bowling Green, New York, New York 10004.

The Notice of Filing and Hearing on Petition Seeking Recognition of Foreign Proceeding and Related Relief, along with the Chapter 15 Petition and Verified Petition, can be accessed here. These documents have also been sent by email or post to all persons who the Joint Administrators believe are or may be the holders of ordinary unsecured claims. The Joint Administrators encourage all creditors to consider these documents carefully.

As explained in paragraphs 2 and 17 of Part I of the Explanatory Statement, the scheme will only become effective when an order of the High Court sanctioning it is delivered for registration to the Registrar of Companies for England and Wales. On the basis that the Joint Administrators will not deliver any such order to the Registrar of Companies until after the Chapter 15 hearing is held, the Joint Administrators now anticipate that the effective date of the scheme will be on or around 19 June 2018.

Further updates regarding the proposed scheme and the Chapter 15 case will be posted to the LBIE website in due course.