RE: Bluewater Aoka Mizu extension LIKED by 922 Aug 2021 23:09
Suck on this bb and swallow it whole -
'The Decision
Having considered the competing views, Mr Justice Zacaroli refused to sanction the scheme. Agreeing with Crystal Amber, the Judge was not convinced that the “relevant alternatives” were as suggested by the Hurricane Board, nor that shareholders would be “no worse off” absent the Hurricane Plan. The Judge recognised that there was every reason to believe, come July 2022, Hurricane would be able to repay the bonds in full, either from available cash or by bridging any shortfall. As the Judge recognised in his judgment, the bondholders’ desire to obtain control of the company was not a good reason to deprive the shareholders, now, of all but a fraction of their equity, rather than waiting to see if the actual performance over the coming months continued to improve.
Conclusion
As Government financial support is withdrawn and the fall-out from the COVID-19 pandemic comes closer into focus, we anticipate that the attempted use of Part 26A Plans will become more frequent.
For shareholders or creditors who find themselves at the mercy of company boards and/or other creditors trying to take control at their expense, this decision could prove pivotal. Having approved the seven previous restructuring plans under the new procedure, far from the rubber-stamp exercise the Hurricane Board and its advisers might have anticipated, this was the first time the Court declined to sanction a Part 26A Plan. It was a terrific result for Crystal Amber and all Hurricane’s shareholders, relieved that its share of the company has not been diluted, and hopeful that Hurricane will now continue to trade profitably with a view to repaying the bonds in full.'
https://www.rosenblatt-law.co.uk/media/hurricane-force-a-victory-for-shareholders-big-and-small/
Sign In
Follow the stocks
