The decision in Re Scottish Lion Insurance Company Limited [2009] CSOH 127 concerned a preliminary hearing on two specific issues relating to the sanction of a solvent scheme of arrangement proposed by Scottish Lion Insurance Company Limited. A full sanction hearing is scheduled for January 2010.
Insolvency, Restructuring and Run-Off
UK: Court Rules it Has No Jurisdiction to Sanction Scheme Concerning Trust Assets Held by Lehman UK
By Troutman Pepper Locke on
The administrators of Lehman Brothers International (Europe) have been intending to propose a scheme of arrangement under the English Companies Act to enable them to distribute several billions of dollars of assets held on trust by the company in the face of difficulties in establishing who was entitled to the trust assets; in particular, they had not received responses from all potentially interested clients, could not rely on the accuracy of the company’s records and had not received all the information requested from sub-custodians and other intermediaries.
UK: English High Court Rules on Trust Claims in an Insolvency with Potentially Important Consequences for the Lehman Brothers Administration
By Troutman Pepper Locke on
On 24 March 2009, Sir Andrew Park sitting as a High Court judge in the UK Companies Court handed down his judgment in the case of Global Trader Europe Limited (Global Trader). The case is highly significant both for the global financial services industry and for those having to deal with the insolvency or near insolvency of financial institutions. …
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UK: Arbitration and Insolvency
By Troutman Pepper Locke on
In Josef Syska (Administrator of Elektrim SA (in bankruptcy) and Elektrim SA (in bankruptcy) v Vivendi Universal SA & Others [2009] EWCA Civ 677 the main question to be decided by the Court of Appeal was whether, when an arbitration is proceeding in one Member State of the European Union, in this case the UK, and one of the parties to the arbitration becomes insolvent in another Member State, in this case Poland, the consequences of that insolvency, in so far as they affect the arbitration, are to be determined by the law of the Member State where the insolvency proceedings have been instituted or the law of the Member State in which arbitration is taking place.
UK: High Court Rules Insured’s Sale of a Wrecked Vessel was a Transaction at an Undervalue Under s423 Insolvency Act 1986
By Troutman Pepper Locke on
In Dornoch Ltd & Ors v Westminster International & Ors [2009] EWHC 1782 (Admiralty) Mr Justice Tomlinson held that the sale by Westminster International (Westminster) of the wreck of a vessel, the Fariway for the sum of 1000 Euros to a related company was a transaction at an undervalue under s423 of the Insolvency Act 1986 (which, in basic terms, provides that certain disposals made to connected persons for a value less than a fair value may be set aside by the court).
Southern District of New York Compels Arbitration of Assignee of Liquidator’s Claims Under the New York Convention
In a recent decision of the United States District Court for the Southern District of New York, Cooke & Partners, Ltd. v. Certain Underwriters at Lloyd’s, London, No. 08 Civ. 3435 (RJH) (S.D.N.Y. Mar. 26, 2009), the Court compelled the assignee of a liquidator’s claims to arbitrate its disputes with the reinsurers of the liquidated company.
UK: Equitas Part VII Transfer Approved by High Court
By Troutman Pepper Locke on
On 25 June 2009, the High Court approved the statutory transfer of the 1992 and prior non-life business of members and former members of Lloyd’s to Equitas Insurance Limited by way of Part VII transfer under the Financial Services and Markets Act 2000 (FSMA).
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HK: Anglo Starlite Insurance Co. Ltd. in Provisional Liquidation
By Troutman Pepper Locke on
Posted in Hong Kong, Insolvency, Restructuring and Run-Off
Anglo Starlite Insurance Co. Ltd. (the “Company”) was placed into provisional liquidation on 8 May 2009 following an investigation by the Hong Kong Insurance Authority (“IA”). Peter Whalley and Jan Blaauw of PricewaterhouseCoopers were appointed as joint and several provisional liquidators. …
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Regulatory Exclusion Bars Coverage for Lawsuit Brought by the Director of Insurance
By Troutman Pepper Locke on
In Wagner v. United National Insurance Co. et al. (click here to read the decision), the Supreme Court of Nebraska affirmed a district ruling that a regulatory exclusion in a D&O policy excluded coverage for the underlying action brought by the Director of Insurance of the State of Nebraska in his capacity as the bankruptcy liquidator of the insured, an insolvent insurance company.
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Federal Court Grants Receiver’s Motion to Remand Under the McCarran-Ferguson Act’s Reverse Preemption Doctrine
The United States District Court for the Northern District of Florida granted the receiver for The Aries Insurance Company (“Aries Insurance”) its motion to remand the case. The court remanded the receiver’s action to the state court in accordance with the requirements of the McCarran-Ferguson Act’s reverse preemption doctrine.