SCOTTISH LION DECISION OVERTURNED

The Outer House of the Scottish Court of Session has overturned Lord Glennie's refusal to allow Scottish Lion Insurance Co to use a solvent scheme of arrangement to end its liabilities. The decision was unanimous. The Lordships said that SSAs should be treated in the same manner as insolvent schemes. Dan Schwarzmann of PricewaterhouseCoopers, who was scheme adviser to Scottish Lion said that he was delighted with the outcome. The four day appeal hearing was "the most extensive review of solvent schemes of arrangement to date and the clarity of the judgement is enormously pleasing". He added that "I know that some solvent schemes of arrangement were being held up pending this decision. As always, we will continue to work with all stakeholders, including policyholders, to address any concerns they may have". Lord Glennie's line meant that that any objection to a scheme, no matter how frivolous, would effectively scupper that scheme. Mr Schwarzmann said that scheme arrangers would always work with all stakeholders, including policyholders, when putting together an SSA.