By letter dated June 30, 2020, the Joint Scheme Administrators of Stronghold Insurance Company Limited notified Stronghold’s creditors of its plans to propose a scheme of arrangement to resolve all past, present, and future obligations. Stronghold is proposing a single class of creditors for all direct creditors (including those with agreed claims, notified outstanding claims, and IBNR claims). The application to grant permission to Stronghold to hold the creditor meetings will be heard on July 21, 2020 in London. Creditors are asked to contact PwC with any questions at firstname.lastname@example.org.
If the scheme vote is held and the proposed scheme is approved by a majority of creditors in each class comprising at least 75% of the value of the claims, the final claims bar date would be 180 days after the vote was sanctioned and the scheme becomes effective.
Stronghold has been in run-off since 1985. Since 2016, it has failed to meet the Solvency II capital requirements. A solvent scheme of arrangement was proposed in 2018 but met opposition from creditors. The company was then declared insolvent and placed in administration on June 27, 2019. Dan Schwarzmann and Douglas Rackham from PricewaterhouseCoopers LLP were appointed as joint administrators. For more information, see Stronghold’s website or PwC’s website. KCIC will continue to monitor and report on developments as the scheme progresses.
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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