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Client success stories

Solvent and insolvent pool (multiple participants)

Scheme Management – Timebar review

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Scheme Management – Timebar review

 

Client description
• EAUA Pools (Marine, Aviation and Non Marine), multiple lines of business placed 1954 to 1992
• 19 solvent and insolvent companies

 

The Client’s requirements
• Certain legal systems provide for limitation periods in which an action has to be brought. Under English law, section 5 of the Limitation Act 1980 states: ’An Action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued’
• Unpaid balances were held on the inward ledger which EAUA pool participants could potentially invoke ‘timebar’

 

Our solution
• Conducted a review to identify balances subject to ‘timebar’ defence, considering:
• Values that would fall over 6 years old within the next 12 months
• Creditors with a Standstill agreement in place, which may have reduced the use of ‘timebar’ as a defence to claims payments
• Recommended that identified balances were ‘written back’ on the ledger, and a provision made in the accounts for the balances to ensure transparency

 

Services/Value delivered
• Total net saving of $4.2 million for the clients
• Equivalent cost of review represented less than 1% of savings realised 

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