Vol 17 (2020) - Issue 6

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Re ColourOz Investments 2 LLC and Others [2020] EWHC 1864 (Ch), Snowden J

Synopsis
This is the convening hearing judgment for schemes of arrangement pursuant to Part 26 of the Companies Act (the 'Schemes') in respect of certain entities of the Flint group of companies (the 'Flint Group'), a global printing and packaging supplier. This was the first scheme of arrangement judgment to apply the New Practice Statement (as defined below). Whilst not in immediate financial distress, the Flint Group proposed the Schemes to extend the maturity on their main credit facilities (among other amendments). Creditors were provided with 17 days' notice (including three weekends) of the convening hearing. Considering the notice to be inadequate, the Court applied the New Practice Statement to make an order permitting creditors an extended period to subsequently seek to vary or discharge the convening order due to the lack of adequate notice whilst still permitting the convening of the Schemes.