Dear CoinFLEX Community,
It has been a while since our last update on the Reorganization process. As you are aware, our priority has been to implement the Scheme of Arrangement, which was overwhelmingly approved by the creditors.
The implementation of the Scheme of Arrangement would allow us to:
- Distribute the Composite of Assets to Creditors; and
- Satisfy the conditions of our arrangement with the SmartBCH Alliance, which would result in BCH on the SmartBCH Network being redeemable 1:1 for BCH (mainnet).
The Seychelles court approval process was prolonged as one Individual and his wholly owned subsidiary sought to continuously intervene to put aside the Scheme of Arrangement and force the company to go into liquidation. The reasons for such actions are obvious and, if successful, would have severely prejudiced the interest of creditors and damaged or destroyed the opportunity for the SmartBCH community to be made whole.
We are pleased to advise that the Seychelles Court ruled on Friday 4 Nov 2022 and Tuesday 15 Nov 2022 that these interventions (by the Individual and the wholly owned subsidiary) to the Scheme of Arrangement were rejected based on the arguments put forward by CoinFLEX.
The court ruled that the Individual had not come to the court with “clean hands”. We believe that the Court understood the ulterior motives for his intervention. We are encouraged by this outcome.
This means the intervenor has lost his applications and will also be liable to pay our legal costs. A copy of the written ruling relating to the Individual (dated 4 November 2022) can be found here. The written ruling with respect to the wholly owned subsidiary is expected to be released later this week. We will share a copy of that ruling once it is published.
We are glad that the Court has dismissed the intervention applications. Now that they have dealt with these interventions, the Court has advised that they have set hearings on 9 and 12 December 2022 to consider approval of the Scheme.
Update [Tuesday 22 November 2022]:
A copy of the written ruling with respect to the wholly owned subsidiary can be found here.