Court sanctions another scheme of arrangement for foreign based group

The Judge was asked to sanction the convening of creditors meetings to consider schemes of arrangement for English and Dutch incorporated companies, which he was prepared to do.

The schemes were proposed as part of the restructuring of the global Nyrstar metals group and one of its Dutch incorporated creditors. As part of the restructuring of the group, an English company was incorporated and became a debtor.

The Judge sanctioned the convening of meetings for both companies using what he described as the “well-trodden path” of the English courts approving schemes for foreign companies where they can be wound up under UK insolvency legislation as the Recast EC Insolvency Regulations do not apply to schemes of arrangement.

The Judge did consider whether the Recast EC Judgment Regulations applies to schemes and concluded that, if it applied, it was satisfied, due to a combination of the domicile of certain of the group’s creditors and the English jurisdiction clause of the facility agreement relating to the Dutch company.

The Judge was also satisfied that the schemes would be recognised in other relevant jurisdictions and directed that scheme meetings should be held.

With Brexit due at some stage in the future, the English courts continue to support the restructuring of foreign entities in this jurisdiction outside the EC Insolvency Regulations.

In the matters of NN2 Neeco Limited and Politus BV [2019] EWHC 1917 (CH)

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