Non-compliant scheme of arrangement saved

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The failure to include the statement of the directors’ interests with notice of the meeting to approve a Scheme of Arrangement amounting to statutory non-compliance was rectified, resulting in approval of the scheme by the court.

The court had previously refused to convene meetings of creditors to consider a Scheme of Arrangement due to a failure to disclose material interests of the directors of the company and the effect of those interests on the arrangement if it differs to the interests of others in addition to other deficiencies in the information provided by the Company as part of the scheme process.

Having attempted to rectify those deficiencies, the Court was prepared to sanction the convening of a single meeting of creditors.

In the matter of Sunbird Business Services Limited [2020] EWHC 2860 (Ch)

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