Hilding Anders restructure plans sanctioned

HAI was party to a facility agreement which had been restructured last year to extend the date for payment to 2026. That restructure had not been entirely successful as it had failed to improve the position of a group and a restructure plan was now proposed in order to improve the liquidity position. To do this, a new money facility was proposed which would rank ahead of the term loan and debt for equity swap proposed in relation to notes issued by Lux Holdings. This was a new money scheme similar to one proposed and approved in ED& F Man Holdings. The relative alternative was liquidation and a report prepared suggested in that scenario some scheme creditors would receive nothing at all.

The two scheme meetings were convened in June and in July Mr Justice Richard Smith sanctioned both schemes. In doing so, the judge considered whether there would be any blot on the scheme on the basis both companies were incorporated overseas and had assets in Switzerland. On this point the court was satisfied it had jurisdiction as the facilities were governed by English Law and the expert evidence was that the schemes if approved were likely to be recognised and given effect in Sweden, Luxembourg and Switzerland.

On that basis the schemes would be approved.

Hilding Anders International AB [2023] EWHC 1513
Hilding Anders International AB [2023] 7 WLUK 200