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Scheme of arrangement approved on basis of bank’s positive commitment to company
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High Court approves a scheme of arrangement proposed by examiner of company with significant bank debts, on the grounds that creditors' objections about supposed "vague and uncertain information concerning the future prospects of the company" are sufficiently allayed by financial projections pointing to the bank's positive commitment to supporting the company for a 12-month period during 2016.
Examiner's report - court's consideration - application to confirm proposal's for scheme of arrangement - creditors' opposition - approach to be applied - company's bank debt not being written down - agreement with bank regarding restructuring of company's debts - answers in correspondence provided by examiner - whether examiner being unduly optimistic regarding company's reasonable prospect of survival - whether scheme unfairly prejudicial to interests of any creditor - bank has shown a positive commitment to supporting company - no unfairness in treatment of various classes of creditors - no evidence to suggest bank's statements in support of company cannot be taken at face value - continued employment of sixteen employees - approval of modified scheme of arrangement.
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