Distribution Plan approved for client assets of Strand Capital Limited (in special administration)
8 Apr 2019 |
1 minute read
This website will offer limited functionality in this browser. We only support the recent versions of major browsers like Chrome, Firefox, Safari, and Edge.
Our Restructuring and Insolvency Team act for the special administrators of Strand Capital Limited, which was a discretionary investment fund manager ("Strand").
Our team has been working with the special administrators to set a soft bar date and draw up a distribution plan for the return of the client assets (excluding client monies) of Strand.
On 2 April 2019, the Court granted an order which approved the distribution plan. This is only the fourth distribution plan to be approved by the court, and was based on the approach taken in the special administrations of MF Global UK Limited, Hume Capital Securities Limited and Beaufort Assets Clearing Services Limited. In making the order, Mr Justice Carr followed the approach adopted by Mr Justice Arnold in paragraphs 10-11 of Re Beaufort Asset Clearing Services Limited [2018] EWHC 2287 (Ch). The key takeaways from this decision are:
On the facts of the case the judge placed weight on the fact that all interested parties (including the FCA) had had the opportunity to review the distribution plan, no objections had been received, the assets would be returned in full and whole to the clients and the plan was supported by the FSCS.
