Scheme of arrangement rejected by the Court: Creditors’ schemes and the impact on ordinary shareholders

Jason Jordan and Zoe Leyland of Herbert Smith Freehills Kramer report on the Federal Court’s refusal to approve Twinza Oil’s creditors’ scheme after finding the company had not proved ordinary and preference shareholders lacked an economic interest, underscoring the risks of deferring class issues to the second hearing and the need for detailed, transparent valuation evidence.

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