On Wednesday 29 April the Outer House of the Court of Session in Edinburgh issued an opinion sanctioning two schemes of arrangement proposed by Premier Oil Plc and Premier Oil UK Limited (together, Premier Oil) (the Schemes). The Court addressed multiple grounds of challenge and did so without hearing live evidence, despite disputes of fact between the parties.
Premier Oil’s largest creditor, Asia Research and Capital Management (ARCM), holding a c15% stake across Premier Oil’s debt, opposed the Schemes at the Court hearing held on 17-19 March 2020 and has lodged an appeal against the Court’s sanction decision. Until the outcome of ARCM’s appeal is resolved, the Schemes are effectively stayed.
ARCM’s opposition to the Schemes was multi-faceted, ranging from challenging the permissible scope of Schemes, the proposed creditor class composition and its use of an insolvent comparator, to arguing that the Schemes are inherently unfair. ARCM also argued at the sanction hearing that the recent oil market collapse rendered the Schemes nonviable.
In her opinion, Lady Wolffe rejected each of the grounds of challenge raised by ARCM. This article discusses some notable issues decided in the opinion.
Read the full article
More from the Weil European Restructuring Blog
This website is maintained by Weil, Gotshal & Manges LLP in New York, NY © 2020 Weil, Gotshal & Manges LLP, All Rights Reserved. The contents of this website may contain attorney advertising under the laws of various states. Quotation with attribution is permitted. This publication is provided for general information purposes only and is not intended to cover every aspect of the purpose for the law. The information in this publication does not constitute the legal or other professional advice of Weil London or the authors. The views expressed in this publication reflect those of the authors and are not necessarily the views of Weil London or of its clients. These materials may contain attorney advertising. Prior results do not guarantee a similar outcome.