NRG London Reinsurance Company Ltd, in the matter of NRG Victory Aust Ltd and the Corporations Act 2001 [2006] FCA 872

FEDERAL COURT OF AUSTRALIA

NRG London Reinsurance Company Ltd, in the matter of NRG Victory Aust Ltd and the Corporations Act 2001 [2006] FCA 872

CORPORATIONS – Scheme of arrangement – two insurance companies, whose business was exclusively reinsurance, that had been in "run-off" for many years – "cut-off" scheme designed to quantify and pay out all existing claims – convening of meeting of creditors – whether separate meetings of "classes" of creditors should be convened – meaning of "class" in s 411(1) of Corporations Act 2001 (Cth) – considerations relevant to the question whether creditors should be regarded as belonging to different classes for purpose of s 411(1). Held: on the facts, separate meetings of classes of creditors not called for, a single meeting of all creditors being appropriate.

Corporations Act 2001 (Cth) s 411 Re Mercantile Mutual Insurance (Australia) Ltd (2002) 196 ALR 362 cited Re Safety Fix Pty Ltd [1962] VR 467 cited Re British Aviation Insurance Co Ltd [2005] EWHC 1621 distinguished Sovereign Life Assurance Company v Dodd [1892] 2 QB 573 cited Re Hills Motorway Ltd (2002) 43 ACSR 101 cited Re HIH Casualty and General Insurance Ltd [2006]NSWSC 485 cited Re Hawk Insurance Co Ltd [2001] 2 BCLC 480 cited Re NRG Victory Reinsurance Ltd [2006] EWHC 679 cited Re Sovereign Marine & General Insurance Co Ltd [2006] EWHC 1335 cited

NRG LONDON REINSURANCE COMPANY LIMITED (ABN 77 001 160 792)

NRG LONDON REINSURANCE COMPANY LIMITED (ABN 47 002 971 477) NSD 1125 OF 2005 LINDGREN J 5 JULY 2006 SYDNEY IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY NSD 1125 OF 2005

IN THE MATTER OF NRG LONDON REINSURANCE COMPANY LIMITED AND NRG VICTORY AUSTRALIA LIMITED AND THE CORPORATIONS ACT 2001

NRG LONDON REINSURANCE COMPANY LIMITED (ABN 77 001 160 792)