This page contains the most frequently asked questions about the Companies. If you require further information, please contact the Run-off Company using the information below:
By Post:Hampden Plc, 40 Gracechurch Street, London, EC3V 0BT
United Kingdom, marked for the attention of Matt Brand
By e-mail:[email protected]
By phone:++44 (0) 207 863 6560
Capitalised terms bear the same meaning as in the Amending Scheme. In the event of any inconsistency between this document and the provisions of the Amending Scheme, the provisions of the Amending Scheme shall prevail over this document.
Original Scheme of Arrangement
Amending Scheme of Arrangement
What is a scheme of arrangement?
A scheme of arrangement is an agreement between a company and its creditors which once approved by: (1) a majority of creditors representing at least three quarters in value; and (2) the UK court, is binding on all creditors.
When did the Original Scheme become effective?
The Original Scheme became effective on 7 March 1997.
When did the Amending Scheme become effective?
The Amending Scheme became effective on 14 January 2016.
What happened when the Amending Scheme became effective?
All Scheme Creditors, except in certain limited circumstances, were required to submit a completed Claim Form prior to the Bar Date. The Companies then reviewed the claims submitted by the Scheme Creditors and sought to agree each Scheme Creditor's claim value.
What if a Scheme Creditor did not respond to or submit a claim before the Bar Date?
Any Scheme Creditor that failed to submit their claim before the Bar Date, then, except in certain limited circumstances, the value, if any, of that Scheme Creditor's Established Liabilities and Agreed Claims formed the basis of that Scheme Creditor's Net Liabilities, upon which their final dividend payment will be based.
The exceptions relate to:
| (i) | Qualifying ILU Policyholders who opted out of the Amending Scheme before the Bar Date and who may continue to bring claims against the Companies up to 31 December 2035; |
| (ii) | Qualifying ILU Policyholders, who are not individuals and did not opt out of the Amending Scheme but who can satisfy the criteria set out in paragraph 43 of the Amending Scheme; and |
| (iii) | Individual direct action claimants who can satisfy the criteria set out in paragraph 43 of the Amending Scheme. |
When was the Bar Date?
The Bar Date was midnight (English time) on 12 September 2016.
What is a Qualifying ILU Policyholder?
A Qualifying ILU Policyholder is a Scheme Creditor of the Companies under a Qualifying ILU Policy.
What is a Qualifying ILU Policy?
A contract of insurance, reinsurance or retrocession between the Companies and a Scheme Creditor evidenced by a policy signed and issued by the ILU:
(1) In the case of The London and Overseas Insurance Company Limited with an inception date on or after 20 March 1969; and
(2) In the case of OIC Run-Off Limited (formerly The Orion Insurance Company Limited) with an inception date on or after 28 August 1970.
What does opt out mean?
All Scheme Creditors with Qualifying ILU Policies can, for claims under these policies, elect to opt out of the crystallisation and payment provision of the Amending Scheme. Instead they can elect to continue to present their claims as they develop in the future and have them paid under the terms of the Original Scheme. Claims will be paid by the Companies at the prevailing Opt Out Payment Percentage and “topped” up to 100% of the Qualifying ILU Policyholder's claim using funds borrowed by the Companies from the Facility.
What is a Potentially Protected Policyholder?
A policyholder with claims that arise under policies covered by the FSCS (previously the Policyholders Protection Board), which when matured would be eligible for protection under the Policyholders Protection Act 1975 or under the FSCS Rules if the Company were an insurance undertaking in default and the Policyholders Protection Act 1975 or the FSCS Rules applied to that default.