One Funds Management Limited, in the matter of One Funds Management Limited

One Funds Management Limited (OFML) has applied for orders under section 411 of the Corporations Act 2001 (Cth) to convene a meeting of scheme creditors to consider a revised scheme of arrangement proposed as a means of resolving claims against the company. This application follows the unsuccessful attempt to pass the first proposed scheme at a meeting of creditors, where the resolution did not meet the required 75% approval by value of creditors. The revised scheme aims to resolve claims from unitholders in various managed investment schemes, including the Glen Waverley Fund, JY Hotel Fund, Cornerstone New SIV Bond Fund, and Cornerstone Bond Fund. Key changes in the revised scheme include a larger Scheme Fund, increased contributions from Participating Insurers and OFML's ultimate holding company, and the exclusion of certain unitholders from the definition of Scheme Creditors.

The court considered the legal issues surrounding the convening of the scheme meeting, the approval of the draft Explanatory Statement, and the stay of proceedings. The primary legal issue was whether the revised scheme met the necessary criteria under the Corporations Act to proceed with the meeting of creditors. The court also considered objections from some creditors regarding class composition, disclosure, fairness, and the propriety of the scheme's purpose. The court declined to make final determinations on these objections at the first hearing, opting instead to reserve judgment until the second hearing to allow objectors more time to prepare their arguments.

The court granted the orders sought by OFML, allowing the convening of the scheme meeting on 30 May 2025. The meeting will be conducted electronically, and the Explanatory Statement, along with other scheme materials, will be distributed to creditors. The court also outlined the voting process and the rules governing the meeting, ensuring compliance with the Corporations Act and the Federal Court Rules. The court further restrained all further proceedings by scheme creditors against OFML, except by leave of the court, and imposed confidentiality measures on certain documents to protect sensitive information.

The final orders include the convening of the scheme meeting, the approval of scheme materials for distribution, the restraint of further proceedings, and the imposition of confidentiality on certain documents. The further hearing of the application is adjourned to 5 June 2025, allowing time for the preparation of arguments by objecting creditors.