Although the Sunbird scheme of arrangement was approved by the relevant creditors, sanction was refused by Mr. Justice Snowdon, who highlighted:

  • a ‘paucity of information provided by the company as part of the scheme process’, and
  • a failure to engage with creditors ‘whom the directors clearly felt were irrelevant or would be an obstacle to their plans’.

He remarked that the company’s approach 'fell a considerable distance short of what was required for a fair process'

His judgment sets out helpful guidance as to what information should be provided to scheme creditors. The judgment also provides interesting commentary in relation to lock-up agreements, and the payment of associated lock-up fees. Please click here for further information.