Vol 18 (2021) - Issue 4

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Re ColourOz Investment 2 LLC and ors [2020] EWHC 1864 (Ch)

Synopsis
The High Court made orders convening meetings of scheme creditors of seven companies for the purposes of considering, and if thought fit, approving seven creditor schemes of arrangement. Two working weeks' notice of the convening hearing had been given to scheme creditors. The Court held that this period of notice was inadequate. It nonetheless agreed to convene the meetings on the basis that scheme creditors were to be given an extended period within which to vary or discharge the convening orders. The Court also refrained from sub-dividing the proposed classes of creditor despite the possibility that a consent fee offered in connection with the entry and accession to a lock-up agreement might have induced scheme creditors to commit to vote to approve the schemes which they might otherwise have voted against.