Catholic Church Insurance Limited, in the matter of Catholic Church Insurance Limited

In the matter of Catholic Church Insurance Limited (CCI), the Court was asked to convene a meeting of scheme creditors to consider and potentially approve a proposed scheme of arrangement. This arrangement, a contingent reserving scheme, was proposed by CCI to manage its liabilities arising from insurance contracts, excluding certain excluded insurance contracts. The scheme involves a two-stage process, where CCI's liabilities are met normally during an initial period, and only if a trigger event occurs would the scheme materially affect the creditors' rights. The trigger event is defined as a situation where CCI would become insolvent or its assets would fall below its liabilities.

The legal issues before the Court included whether any class delineation was required among the creditors and whether it was appropriate to make the orders sought by CCI. The Court considered the proposed scheme's structure, the nature of the liabilities, and the process for convening the creditors' meeting. The Court also examined the evidence provided by CCI, including affidavits from CCI’s Chief Executive Officer and General Manager of Underwriting and Product, detailing the scheme's benefits and the process for creditor engagement.

After considering the evidence and the requirements of the Corporations Act, the Court found it appropriate to make the orders sought by CCI. The Court determined that the scheme's two-stage process did not necessitate any class delineation among the creditors and that the proposed process for convening the meeting was fair and in line with the statutory requirements. The Court approved the explanatory statement, which detailed the scheme's terms and the expected dividends to creditors under different scenarios.

The Court issued orders convening a meeting of scheme creditors to consider and potentially approve the proposed scheme. The meeting was to be conducted virtually and held on 31 October 2023. The Court also directed specific procedures for notifying creditors and managing the meeting, including deadlines for creditor registration and proof of debt submissions. The Court further specified that certain rules governing meetings of creditors would not apply to the scheme meeting, with modifications to accommodate the unique nature of the scheme.