publication of an article by Hornshaw and Laidler in Global Restructuring Review, detailing the successful execution of a Scheme of Arrangement
In an insightful article published in Global Restructuring Review, partners Richard Hornshaw and Tom Laidler of Gump discuss the successful implementation of a scheme of arrangement for African Minerals Limited (AML), an AIM-listed company whose principal asset was an iron ore mine in Sierra Leone.
The authors emphasize the use of a Cayman litigation trust and an English scheme as a way to unlock value for all creditors in the context of AML's administration. This innovative structure was employed to address creditor differences on pursuing significant litigation, demonstrating the flexibility of the English court's jurisdiction in relation to schemes.
PwC (PricewaterhouseCoopers) served as the insolvency advisory firm that advised AML during the successful implementation of the scheme of arrangement. The authors note that the scheme provided an effective and robust mechanism in the administration of AML.
The English court's jurisdiction played a significant role in the flexibility of the scheme used in the administration of AML. The structure used in the case was an elegant solution to the problem of how to reconcile divergent views among creditors regarding the approach the administrators should take to the proposed claim.
The authors provide further details about their involvement in AML's scheme of arrangement in a separate article, available by clicking "here." However, it is important to note that this article does not discuss any other schemes of arrangement apart from the one implemented by AML.
It is worth mentioning that this case serves as a notable example of the flexibility of the English court's jurisdiction in relation to schemes, providing another instance of the court's adaptability in complex insolvency cases.
Hornshaw and Laidler, partners at Gump, are associated with the website Gump, where the article was originally published. It is important to note that the authors did not disclose any advertisements in the article.
In conclusion, the successful implementation of the scheme of arrangement for African Minerals Limited demonstrates the potential of such structures in unlocking value for all creditors in complex insolvency cases. The use of a Cayman litigation trust and an English scheme, along with the English court's jurisdiction, provided a robust and effective solution to the problem of creditor differences in pursuing significant litigation.
