Termination of the Scheme. 9.2.1 This Scheme shall automatically terminate if: (a) the Effective Time does not occur on or before the Longstop Date; (b) LFSL does not pay the Initial LFSL Contribution to the Settlement Account on or before the Initial LFSL Contribution Deadline; (c) the Parent does not pay the Initial Parent Contribution to the Settlement Account on or before the Initial Parent Contribution Deadline; or (d) except where Schedule 4 (Continuity of payments to Scheme Creditors) applies, the Initial Settlement Account Distribution is not paid from the Settlement Account to the WEIF by the Initial Settlement Distribution Date. 9.2.2 With immediate effect on and from the Termination Date: (a) the Trust shall be dissolved; (b) LFSL will hold all amounts standing to the credit of the Settlement Account on trust for the Parent, the Insurers and LFSL. (c) the Standstill Period will cease and Scheme Creditors will be free to commence or continue Proceedings against: (i) LFSL, in respect of the Scheme Claims; and (ii) any of the Released Parties in respect of the Released Claims; (d) LFSL shall promptly repay amounts standing to the credit of the Settlement Account at the time of the Termination Date to the parties who contributed the funds to the Settlement Account (in proportion to that party's actual contribution to the amounts standing to the credit of the Settlement Account at the Termination Date), being: (i) the Parent, in respect of the Parent Contributions; (ii) the Insurers, in respect of the Insurance Proceeds; and (iii) LFSL, in respect of the Initial LFSL Contribution and any other contributions it made to the Settlement Account prior to the Termination Date; (e) the trust over the BTA Reserve Amount (as established pursuant to Clause 4.8.2 (BTA Reserve Amount)) shall be dissolved with immediate effect; and (f) LFSL shall notify the Scheme Creditors and the Scheme Supervisors of the Scheme's termination and the Termination Date by: (i) posting a notice to this effect on the Website; and (ii) placing advertisements to this effect in the Times, the Telegraph and the Daily Mail. 9.2.3 Except where Clause 9.2.1 (Termination of the Scheme) applies, the Scheme shall not terminate if an Insolvency Event occurs in relation to LFSL, the Parent, the WEIF or any other person.
Appears in 1 contract
Sources: Scheme of Arrangement
Termination of the Scheme. 9.2.1 This Scheme shall automatically terminate if:
(a) the Effective Time does not occur on or before the Longstop Date;
(b) LFSL does not pay the Initial LFSL Contribution to the Settlement Account on or before the Initial LFSL Contribution Deadline;
(c) the Parent does not pay the Initial Parent Contribution to the Settlement Account on or before the Initial Parent Contribution Deadline; or
(d) except where Schedule 4 (Continuity of payments to Scheme Creditors) applies, the Initial Settlement Account Distribution is not paid from the Settlement Account to the WEIF by the Initial Settlement Distribution Date.
9.2.2 With immediate effect on and from the Termination Date:
(a) the Trust shall be dissolved;
(b) LFSL will hold all amounts standing to the credit of the Settlement Account on trust for the Parent, the Insurers and LFSL.
(c) the Standstill Period will cease and Scheme Creditors will be free to commence or continue Proceedings against:
(i) LFSL, in respect of the Scheme Claims; and
(ii) any of the Released Parties in respect of the Released Claims;
(d) LFSL shall promptly repay amounts standing to the credit of the Settlement Account at the time of the Termination Date to the parties who contributed the funds to the Settlement Account (in proportion to that party's actual contribution to the amounts standing to the credit of the Settlement Account at the Termination Date), being:
(i) the Parent, in respect of the Parent Contributions;
(ii) the Insurers, in respect of the Insurance Proceeds; and
(iii) LFSL, in respect of the Initial LFSL Contribution and any other contributions it made to the Settlement Account prior to the Termination Date;
(e) the trust over the BTA Reserve Amount (as established pursuant to Clause 4.8.2 (BTA Reserve Amount)) shall be dissolved with immediate effect; and
(f) LFSL shall notify the Scheme Creditors and the Scheme Supervisors of the Scheme's termination and the Termination Date by:
(i) posting a notice to this effect on the Website; and
(ii) placing advertisements to this effect in the Times, the Telegraph and the Daily Mail.
9.2.3 Except where Clause 9.2.1 (Termination of the Scheme) applies, the Scheme shall not terminate if an Insolvency Event occurs in relation to LFSL, the Parent, the WEIF or any other person.
9.2.4 Clauses 2.4.2 (Standstill Period), 8.1.3 (The Scheme Supervisors), 8.6 (Scheme Supervisors' Indemnity), 9.2 (Termination of the Scheme) and 10.3 (Governing law and jurisdiction) shall survive the termination of the Scheme.
Appears in 1 contract
Sources: Scheme of Arrangement