Following up on our previous blog on Lord Glennie’s controversial decision in the Scottish Lion solvent scheme of arrangement we can now report that last week the scheme was formally dismissed.
According to recent press reports, PricewaterhouseCoopers, the scheme managers, have indicated that they intend to appeal the decision. Until then, and assuming English courts take heed of the Scottish court’s decision, the ruling represents a potential stumbling block for solvent schemes of arrangement proposed by insurers, where it cannot be shown that there is real benefit to creditors, rather than merely the shareholders, of the proposing company.
