Landmark scheme of arrangement in Ireland by Ruairi Rynn

William Fry recently advised Ballantyne Re plc (“Ballantyne”), an Irish reinsurance SPV, on an Irish law scheme of arrangement to restructure its reinsurance obligations and outstanding New York law governed indebtedness, such that the residual value in the company could be distributed to its senior noteholders (the “Scheme”).

The Scheme provided for, amongst other things, the restructuring of third party guaranteed senior debt, the commutation of the largest guarantor’s obligations and the preservation of the second guarantor’s obligations until the original maturity of Ballantyn’s senior debt in 2036.