Woodford investors set for early 2024 payout if scheme passes

investmentweek.co.uk:

To pass, at least 50% of investors in number representing at least 75% of the value of the fund who vote must approve the scheme.

In a practice statement letter published today (7 September), LFS laid out a timeline for the scheme, along with its view on the alternatives if creditors refuse to back it.

On 10 October, LFS will attend a first court hearing to gain permission to call a meeting of scheme creditors to vote on their proposals, which, if granted, will allow investors in the former Woodford flagship to accept or reject the offer.

From this hearing until 4 December, investors will be able to vote on the proposals via an online system, with a method for those lacking internet access also to be provided.

A meeting will be held on 4 December, during which creditors will have an opportunity to discuss the scheme with LFS and their fellow investors. It is expected the result of the vote will be made «shortly» after this meeting.

To pass, at least 50% of investors in number representing at least 75% of the value of the fund who vote must approve the scheme.

If enough investors approve the scheme, a second court hearing will be held on 15 December, in which the court will judge whether the scheme meeting was properly held, and whether the deal is fair for investors «as a whole».

From 18 December, the scheme will become effective, if the above steps are all successfully passed.

If the scheme is approved, a settlement fund of up to £230m will be made available, with the first distribution expected to be issued during Q1 2024.

According to LFS, this represents roughly a total repayment of roughly 77% of total losses.

As has been previously stated, approval of the deal will absolve LFS and Link Group of any legal