Update – Announcement of the 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 – notification of effective date – 20 June 2018

Further to the announcement made on 18 June 2018 (a copy of which can be accessed here), the Joint Administrators are pleased to announce that, following the receipt on 19 June 2018 of the Order from the US Bankruptcy Court granting Chapter 15 recognition of LBIE’s scheme of arrangement (a copy of which can be accessed here), the Joint Administrators have today filed the Order of the High Court of England and Wales sanctioning the scheme at the Registrar of Companies (a copy of which can be accessed here), and the scheme has now become effective.

As explained in previous communications, the scheme is binding on all “Scheme Creditors”, being persons with ordinary unsecured claims against LBIE, and provides a framework for the consensual determination of Scheme Creditors’ entitlements to LBIE’s surplus, so as to facilitate an expedited payment to Scheme Creditors in respect of their statutory interest entitlements.

As soon as reasonably practicable, LBIE will now determine the funds available for distribution to Scheme Creditors in respect of their statutory interest entitlements (including the 2.5% settlement premium which certain Higher Rate Creditors elected for). On the basis that the bar date has now occurred and the deadline for the submission of Certifications passed, the Joint Administrators expect to be able to publish in the near future a Scheme Outcome Statement on LBIE’s website confirming that LBIE can pay all statutory interest entitlements in full and, subject to certain conditions having been met (including the provision of settlement instructions and KYC information), are targeting making distributions to all Scheme Creditors (other than those who have submitted Certifications in respect of their Higher Rate Claims) around the end of July 2018.

Further information on the process by which distributions will be made to Scheme Creditors, and the steps to be taken by Scheme Creditors prior to the receipt of such distributions, will be posted to LBIE’s website and communicated to Scheme Creditors in due course.

If you have any questions in relation to the scheme, please contact the Joint Administrators by email to schemequeries@lbia-eu.com.