The Hawk Insurance Company Limited

Formed in 1964 as an English subsidiary of Al-Ahleia Insurance Company SAK, a Kuwaiti insurance company, Hawk Insurance Company Limited ("Hawk") began writing motor business from 1965. In late 1968, D.G. Jago Underwriting Agency was appointed to write reinsurance business, which it did from 1969 to 1976. From 1979 Hawk's balance sheet was protected by a stop loss reinsurance contract from the parent. The limit was periodically raised, ultimately to a value of US$3,508,000 in December 1993. Draft accounts for 1994 indicated a further deterioration leading to a net deficiency of £2.7 million and the parent decided not to provide additional support. As a result, Hawk applied to the High Court for the appointment of Joint Provisional Liquidators.

The Joint Provisional Liquidators distributed a Scheme of Arrangement ("Scheme") to creditors on 22 October 1999. The Scheme was voted upon and unanimously approved by creditors on 9 December 1999. Following the Court's initial refusal to sanction the Scheme and our subsequent appeal to the Court of Appeal, the Scheme was sanctioned by the Court on 23 February 2001. The Scheme was then registered at Companies House and became effective on 28 February 2001. The Scheme is a crystallisation or "cut-off" Scheme with a cut-off date of 31 December 1997. The Final Claims Submission Date, as defined in the Scheme, was 30 May 2001. The Scheme Administrators declared and paid a first and final dividend of 23% in April 2003. On 8 October 2003, the Scheme terminated (182 days after the Final Dividend as stipulated in the Scheme Document). The company was then placed into liquidation with Nigel Rackham and Mark Batten appointed as Joint Liquidators. A release meeting was held on the 6 April 2005 and the liquidation was closed soon afterwards.