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U.K. company under U.K. law – and it would affect all creditors of the reinsurer,
only a small percentage of which were in Canada.
Re Cavell, 2006 CanLII 16529 (Ontario Court of Appeal). The Canadian court may
impose conditions on the recognition of a non‐Canadian scheme of
arrangement, including that the scheme adjudicator must reach a valuation
based on Canadian rules applying to valuations, there will be a right of judicial
appeal if the scheme adjudicator fails to apply the Canadian rules, and the
scheme administrator and the scheme adjudicator must act in good faith and
treat the Canadian policyholders fairly.
Re Cavell, 2006 CanLII 16529 (Ontario Court of Appeal). The Canadian court, in
recognizing a foreign solvent scheme of arrangement, will not interfere with or
fetter the Canadian regulator’s powers over the release of any deposit that the
non‐Canadian insurer was required to make in Canada to protect policyholders
of the Canadian branch.
Re Cavell, 2006 CanLII 16529 (Ontario Court of Appeal). There is no right for
Canadian branch policyholders to form a separate class for voting purposes
under a foreign solvent scheme of arrangement because assets were deposited
in Canada for their protection.