This is a reminder that both meetings of creditors to vote on the direct and general insurance schemes of arrangement will be held on February 2, 2021, with the Direct Scheme Creditors meeting at 10AM GMT and the General Scheme Creditors meeting at 11AM GMT. Participants may join either by videoconference or by teleconference.
Please note that voting and proxy forms are due 5PM GMT on February 1, and creditors are encouraged to submit their votes as soon as possible. The claim values submitted in a scheme vote are non-binding and can be updated and expanded upon for the final claims bar date submission. If the schemes are approved by voters, the final claims bar date is estimated to be early-to-mid August.
Insureds with policies issued directly by Stronghold (or assumed by Stronghold) will be classified as Direct Scheme Creditors. General Scheme Creditors include all other creditors, including reinsurance and retrocession contracts. Both schemes will have a final claims submission deadline of 180 days after they become effective, but General Scheme Creditors will only be paid after all Direct Scheme Creditor claims are agreed and paid in full. The Direct Scheme will proceed if it is approved by creditors, but the General Scheme, even if approved by creditors, will proceed only if the Direct Scheme is also approved.
Stronghold has been in run-off since 1985. A solvent scheme of arrangement was proposed in 2018, but the creditors’ meeting was adjourned without result due to creditor opposition. Subsequently, Stronghold was declared insolvent and placed in administration on June 27, 2019. A hearing was set for July 2020 to grant Stronghold permission to hold a creditors’ vote meeting but was postponed until December 2020 because of the COVID-19 global pandemic.
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Nick Sochurek has extensive experience in leading complex insurance policy reviews and analysis for a variety of corporate policyholders using relational database technology.Learn More About Nicholas