Lifetime Income Limited

[2022] NZHC 806

IN THE HIGH COURT OF NEW ZEALAND WELLINGTON REGISTRY

I TE KŌTI MATUA O AOTEAROA TE WHANGANUI-A-TARA ROHE

CIV-2021-485-616

[2022] NZHC 806

UNDER

Part 15 of the Companies Act 1993

IN THE MATTER

of an application for approval of a scheme of arrangement

BY

LIFETIME INCOME LIMITED

Applicant

Hearing:

12 April 2022

Counsel:

E B Moran for Applicant

L M McKeown for Interested Parties A V McArley and E C Mackay

R J B Fowler QC as Amicus Curiae

Judgment:

14 April 2022

RESULTS JUDGMENT OF ELLIS J

[1]                   For reasons that will be delivered early next week, I am satisfied that the relevant criteria for approving the applicant’s proposed scheme of arrangement under Part 15 of the Companies Act 1993 are met.

[2]                   I therefore make orders in terms of the applicant’s originating application dated 2 November 2021, namely orders:

(a)Approving a scheme of arrangement to:

(i)sell the assets in LIL’s statutory fund two (SF2);

(ii)cancel LIL’s obligations to policyholders in SF2; and

RE LIFETIME INCOME LIMITED [2022] NZHC 806 [14 April 2022]

(iii)Cause LIL to pay out policyholders whose polices are in force as at the end of the month in which the Arrangement is approved in accordance with the approach described in sections 6 to 10 of the independent actuary report annexed to the affidavit of Bernard Gilbert Higgins filed in support of the application.

(b)Directing that the Arrangement is binding on:

(i)LIL and its shareholders;

(ii)LIL’s policyholders; and

(iii)Any other persons necessary to give effect to the Arrangement.

[3]The Arrangement shall take effect from the date of the order.

Rebecca Ellis J

Solicitors:

DLA Piper for Applicant

Duncan Cotterill for Interested Parties