Highlands Insurance Company (U.K.) Limited
| Date of insolvency: | 1 November 2007 (in Administration) 17 April 2012 (in Liquidation) |
| Appointment Holders: | Dan Schwarzmann Mark Batten |
| Financial information: | Last accounts filed 31 December 2005 |
| Current payment percentage: | Direct Scheme Creditors 100%, Cedant Scheme Creditors TBC% |
| Key contacts: | Gary Bray PricewaterhouseCoopers LLP 7 More London Riverside London SE1 2RT Tel: + 44 (0) 20 7213 8900 Richard Walker PricewaterhouseCoopers LLP 7 More London Riverside London SE1 2RT Tel: + 44 (0) 20 7213 3955 |
| Company background: | Highlands Insurance Company (U.K.) Limited ("HUK") was incorporated on 18 November 1974 and is a wholly owned subsidiary of Highlands Insurance Group Inc ("HIGI"). Together with several subsidiaries, HIGI filed for a petition on 31 October 2002 for relief under Chapter 11 of the United States Bankruptcy Code that became effective on 31 March 2003. Between 1983 and 1994 HUK wrote predominantly London market and international excess of loss business, ceasing to underwrite new business in January 1994. Since this date HUK has been primarily involved in the agreement of claims and the making of reinsurance collections. PRO Insurance Solutions Limited were appointed to manage the run-off of HUK business on 1 November 2003. Following a series of reviews in respect of HUK's financial position undertaken during the second and third quarters of 2007, the company Directors concluded that HUK was insolvent on a balance sheet basis and was unlikely to be able to pay its debts. Accordingly the Directors filed an application to appoint an Administrator on 25 October 2007. Dan Schwarzmann and Mark Batten were subsequently appointed as Administrators on 1 November 2007. On 18 June 2009, creditors with claims arising from contracts or policies of direct insurance, as opposed to contracts of reinsurance, voted on and approved a proposed Scheme of Arrangement (the “Direct Scheme”). The Direct Scheme became effective on 19 August 2009 and the deadline for submitting a Final Claim Form was 15 February 2010. Following payment in full of all Establish Liabilities, the Direct Scheme has now been finally implemented. On 10 August 2011, a separate Scheme of Arrangement for creditors with claims arising from contracts or policies of reinsurance (the “Cedant Scheme”), was voted on and approved by the requisite majority of Scheme Creditors. After receiving sanction in the UK and permanent injunctive relief under Chapter 15 of the US Bankruptcy Code, the Cedant Scheme became effective on 22 September 2011, the deadline for submitting a Final Claim form was 20 March 2012. Further information can be found on HUK's website,www.ukhighlands.com |
| Next steps: | It is anticipated that the Cedant Scheme Creditors will be paid a dividend on their Establish Liabilities (in accordance with the terms of the Cedant Scheme) in 2013. For further information and copy documents (including a full text of the Direct Scheme) can be obtained at www.ukhighlands.co.uk or on request to the Joint Administrators. |
Information correct as at: May 2012
