The scheme payment percentage for Sovereign Marine & General has been increased from 65 per cent to 80 per cent with effect from 1 February 2010. The joint scheme administrators of Sovereign, John Wardrop and Mike Walker, both partners in KPMG’s UK restructuring practice, say payments are expected to be made to all creditors with an agreed scheme liability during March and April 2010.
‘We are pleased to announce a further US$30million will be distributed to Sovereign’s creditors,’ says Wardrop. ‘This significant increase in the payment percentage from 65 per cent to 80 per cent is the second since the bar date of 7 April 2008.
‘We are committed to ensuring all Sovereign’s assets are distributed to the creditors as swiftly as possible. To date, scheme claims of $200 million have been agreed with approximately $130 million paid to scheme creditors. We are currently working to agree the remaining claims.’
Sovereign entered provisional liquidation in July 1997, following which a scheme of arrangement was authorised by the court. The scheme became effective in January 2000. On 17 September 2007 the High Court of Justice sanctioned a closing scheme of arrangement which became effective and binding on Sovereign and its scheme creditors on 10 October 2007, with a claims bar date of 7 April 2008.