The Applicability Of Solvent Schemes Of Arrangement To German Portfolios

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The Applicability Of Solvent Schemes Of Arrangement To German Portfolios

The two articles by Dr Schnepp and Ms Janzen which appeared

in the July 2007 editions of Versicherungswirtschaft on whether

solvent schemes of arrangement are effective under German and

EU law made a powerful case for casting doubt on the validity

of such schemes under German law. This article will examine the

arguments put forward by Dr Schnepp and Ms Janzen from both a

commercial and legal standpoint.

Solvent schemes of arrangement have emerged in the last five

or so years as a uniquely powerful procedure to achieve rapid

and legally binding closure of insurance and reinsurance

companies. What had previously been thought of as an impossible

objective has been achieved at an ever-increasing rate in

common law jurisdictions such as England, Scotland, Ireland,

Bermuda, Australia and New Zealand. Although such schemes

emanate from the UK they affect insurers, reinsurers and policy

holders all around the world. It was estimated in February 2007

that of the 80 s...

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