The Royal Court of Guernsey has sanctioned the first ever Scheme of Arrangement in the Island under the new Companies Law.
Law firm Babbé acted on behalf of Bramlin Limited (an AIM listed Guernsey company engaged in oil and gas exploration) in its merger with Victoria Oil and Gas plc.
The Babbé corporate team for the transaction was led by Keith Bell, who said: "The recent changes to the Companies Law in Guernsey have shown that, as a jurisdiction, we can now provide a smoother and enhanced practical service to our corporate client base.
"The well thought-out changes to the new law have streamlined the takeover process, enabling us to have very satisfied clients."
The law as to Schemes of Arrangement allows a decision of 75% of members voting to bind all of the members of a company to a restructuring once sanctioned by the Court. The provisions can also be used to bind creditors.
The new law came into force at the start of July and included a number of significant provisions, brining law surrounding companies in the Island not only in line with other leading jurisdictions but in many respects enhancing the flexibility and sophistication of Guernsey as a corporate jurisdiction of choice.
Andrews Laws, Managing Partner at Babbé, added that he had been pleased to assist a client while at the same time breaking new ground in Guernsey law.
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
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