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CX Reinsurance Company Limited (in Administration) – Direct Scheme of Arrangement & Surplus Lines Trust Claims Process
CX Reinsurance Company Limited (in Administration) (‘the Company’ or ‘CX Re’) – Direct Scheme of Arrangement (the 'Direct Scheme')
In 2024, the Company proposed to enter into a Scheme of Arrangement (the 'Direct Scheme') pursuant to Part 26 of the Companies Act 2006 with its creditors with claims arising in respect of contracts of direct insurance (collectively the 'Direct Scheme Creditors'). A contract of direct insurance means, for these purposes, the cover provided by an insurer to a non-insurer policyholder, as opposed to reinsurance cover provided by an insurer to cover insurance risks written by another insurer.
The Company sent a letter to all known Direct Scheme Creditors for which it had contact details on 4 September 2024, to inform them of the Administrators’ proposal to seek the court’s approval of a single class meeting for voting on the Direct Scheme (the 'Practice Statement Letter' or 'PSL'). A copy of the PSL is available to download below.
Following the issue of the PSL, the Company applied to the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies Court (Chancery Division) for permission to convene a meeting of Direct Scheme Creditors (the "Direct Scheme Meeting") to consider a proposed scheme of arrangement pursuant to Part 26 of the Companies Act 2006 (the "Direct Scheme"). The hearing relating to this application (the "Convening Hearing") took place on 3 October 2024 and the Court subsequently granted the Company's request to convene the Direct Scheme Meeting, by way of an order dated 4 October 2024, a copy of which is available below.
A copy of the Direct Scheme and Notice of the Direct Scheme Meeting was sent to all known Direct Scheme Creditors for which the Company has contact details on 7 October 2024. Copies are also available to download below.
The Direct Scheme Meeting was subsequently held remotely on 12 December 2024 where 100 percent of those Direct Scheme Creditors participating in the Meeting (whether in person or by proxy) voted in favour of the Direct Scheme. Consequently, the resolution to approve the Direct Scheme was passed. Formal Notice of the Result of the Direct Scheme Meeting is available to download below.
The court hearing to sanction the Direct Scheme took place on 17 January 2025 and by an order of the same date, the Court sanctioned the Direct Scheme. The order was subsequently delivered to the Registrar of Companies on 20 January 2025 as required by the Companies Act 2006, and the Direct Scheme accordingly became effective. Formal Notice of the Effective Date of the Direct Scheme is available to download below.
NOTICE IS HEREBY GIVEN that the Effective Date of the Direct Scheme is 20 January 2025, and the Final Claims Deadline is 11.59pm (London time) on 21 July 2025.
IMPORTANT: All Direct Scheme Creditors are reminded that they must submit their Direct Scheme Claims to the Company by no later than the Final Claims Deadline in order to be entitled to receive any payment from the Company in respect of a Direct Scheme Claim, other than for the exceptions noted in the formal notice.
Any person who believes that they may be affected by the Direct Scheme is invited to read the Direct Scheme, consider its contents carefully and take legal advice if they consider it appropriate to do so.
CX Reinsurance Company Limited (in Administration) (‘the Company’ or ‘CX Re’) – Surplus Lines Trust Claims Process
As a condition of being permitted to write insurance business in the United States as an alien insurer, the Company established a trust fund in the United States for the benefit of certain beneficiaries (the “Surplus Lines Trust Fund”) by way of an agreement dated 7 August 2003 (as amended on 31 July 2006) (the “Surplus Lines Trust Agreement”). The Surplus Lines Trust Fund constitutes Security in relation to any Liability of the Company arising under an American Policy.
Further information regarding (i) the Liabilities of the Company to which the Surplus Lines Trust Fund relates, and (ii) which of the Company’s creditors are beneficiaries of the Surplus Lines Trust Fund is provided at Appendix 2 of the Explanatory Statement within the Direct Scheme document, an extract of which is available to view and download from the US Surplus Lines Trust section below.
In order to facilitate the use of the Surplus Lines Trust Fund for the purposes set forth in the Agreement, an amendment to the Agreement, dated 17 February 2025, (the “Amendment”) has been made that authorises the Joint Administrators to set a filing deadline for all potential Surplus Lines Creditors to file their claims, determine the value of such claims, and then distribute the assets within the Surplus Lines Trust Fund. A copy of the Agreement and the Amendment are available to view and download from the US Surplus Lines Trust section below.
NOTICE IS HEREBY GIVEN that the Joint Administrators of CX Re have set a claim filing deadline of 11.59 pm (New York time) on 21 July 2025 (“SL Bar Date”) for Surplus Lines Creditors to file their claim against the Company and share in the Surplus Lines Trust Fund’s assets. Formal notice of the SL Bar Date has been issued to all known potential Surplus Lines Creditors with a letter, dated 31 March 2025, and a Surplus Lines Proof of Claim Form. Copies of all documents are available to view and download from the US Surplus Lines Trust section below.
IMPORTANT: All Surplus Lines Creditors are reminded that they must submit their Surplus Lines Proof of Claim Form to the Joint Administrators by the SL Bar Date in order for their claim to be finally determined and paid, to the extent possible, from the assets of the Surplus Lines Trust Fund.
Note: Surplus Lines Creditors who submit a Direct Scheme Claim Form in the Direct Scheme indicating that they have a Surplus Lines Claim (and have received an acknowledgement from the Direct Scheme Administrator) will be treated as having submitted a Surplus Lines Proof of Claim Form and are not required to submit a separate Surplus Lines Proof of Claim Form, but may do so if they so choose.
Should you have any questions in relation to the Direct Scheme or the Surplus Lines Trust Claims Process, or require a hard copy of any of the documents below, please do not hesitate to contact the Company at CXReClaims@uk.ey.com.
Should you require any information regarding the Administration of the Company, please visit the CX Re Administration Website, where copies of all documents relating to the Administration are available to view and download, including the Administration Order and the Joint Administrators’ Progress Reports.