The Solvent Scheme of Arrangement pursuant to Section 425 of the Companies Act 1985 of Great Britain (the "Scheme") in relation to certain of its business.
Creditors affected by the Scheme will include certain creditors of The Mercantile & General Reinsurance Company Limited as set out in the Scheme.

   12 May 2008 The Scheme was finally implemented in accordance with clause 6.1 on 5 July 2007

 
The Mercantile & General Reinsurance Company Limited.
Registration Edinburgh 6637 Registered Office
Level 2, Saltire Court, 20 Castle Terrace, Edinburgh EH1 2ET

© 2007 The Mercantile & General Reinsurance Company Limited. All rights reserved.

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At a Scheme Meeting held on 26 April 2005, the proposed solvent scheme of arrangement (the "Solvent Scheme"), between the Mercantile & General Reinsurance Company Limited (the "Company") and certain of its creditors (the "Scheme Creditors"), was voted on and approved by the Scheme Creditors. The Solvent Scheme was subsequently sanctioned by an order of the Court of Session, Scotland on 1 September 2005.

The Solvent Scheme became effective on 22 September 2005, being the date on which a copy of the court order sanctioning the Solvent Scheme was delivered for registration to the Registrar of Companies in Scotland. Dan Schwarzmann and Robert Hardy of PricewaterhouseCoopers LLP were appointed as the Scheme Advisers under the Solvent Scheme. In accordance with paragraphs 4.1 (d) and 4.1 (f) of the Solvent Scheme, Robert Hardy resigned as Scheme Adviser in January 2006 and was replaced by Mark Batten, a partner in PricewaterhouseCoopers LLP, with immediate effect.

The deadline for submitting Claim Forms in respect of Scheme Liabilities, being the Final Claims Submission Date (namely 5:00 p.m. London time on 20 January 2006) has now passed.

Where no completed Claim Form was received by the Company by 5:00 p.m. London time on 20 January 2006, the Scheme Liabilities of that Scheme Creditor (other than Scheme Liabilities in respect of claims which have been agreed by the Company but not yet paid as at the Effective Date) have been valued at nil. Scheme Creditors were, however, entitled to payment from the Company under, and subject to the terms of, the Scheme in respect of claims that had been agreed by the Company but not yet paid as at the Effective Date, whether or not a Claim Form setting out the requisite details of such claims had been received by the Company by the Final Claims Submission Date.

All of the Scheme Liabilities of the Company, including disputed Scheme Liabilities referred to a Scheme Adjudicator, have been agreed and/or determined to be Established Liabilities under the terms of the Scheme and the Company has designated all Established Liabilities as Crystallised Liabilities. In accordance with Clause 3.5 of the Scheme the Company has made full and final payment to its Scheme Creditors in respect of their Crystallised Liabilities.

The scheme was finally implemented on 5th July 2007 in accordance with clause 6.1.

Correspondence

If you have a query in relation to the Scheme, please send an email to mgre_info@mgre.co.uk.

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