Chapter 91
When Frances Keen faxed a copy of the judgment to Meredith, Wells and Waring that afternoon, the latter promptly took the initiative. Since the Stratos hearing, he hadn’t wasted any time. His insolvency lawyers had prepared the paperwork weeks earlier for a judge in the Companies Court. They had only been waiting for the signal from Grenville.
Before four o’clock (which was the cut-off point for notifying anyone of a hearing the following day), Grenville, Black and Meredith were all sent copies of the court documents which Waring would present to the judge. Plantation was to be closed as a ‘going concern’ but not destroyed in its entirety : the front door would be boarded up while the back door continued to pay claims ; all contracts running into the future – of which there were tens of thousands – would progressively be terminated ; some would require Plantation to pay ; others would result in Plantation being paid. The pool of funds sitting in its bank accounts would grow to several hundred million pounds in the early years then gradually dwindle to nothing over twenty to thirty years. Waring’s fees and those of the countless brokers, adjusters, lawyers, accountants, consultants and experts would hasten the process.
The next morning at ten o’clock, Waring arrived all smiles at the Companies Court at the back of the High Court building in the Strand.
Inwardly, he glowed with self-satisfaction at the thought of having landed such a big fish after several years of waiting. The battle had not been an easy one. Now, he would have access to the company’s assets and control its bank accounts. He would be able to spend as much time as he liked on whatever work he thought was necessary in winding up the company’s affairs. All of this hard work would generate bills for payment by the creditor’s committee – for whatever amounts he wanted to charge. And it would all go on for a long, long time. Perhaps decades.
The press had been notified of the event. This was an inexpensive way of advertising to everyone that Plantation was no longer trading. The same reporters who had covered the Captain Stratos case were there with their pens at the ready. In a packed court, everyone heard of the company’s inability – or refusal – to comply with Hedley’s Order. Thus, there was no other alternative than to construct a Scheme of Arrangement for the company’s business which would trundle on for the next few decades while accepting no new business and ultimately, shrinking to nothingness.
When the preliminary winding up order was granted, Waring was exultant.
“I’ve waited for this moment for quite some time,” he said “and it will give me great pleasure to announce the news to Mr Robert Ashby on his return. By the way, when exactly is he returning ?”
But the question went unanswered. No-one seemed to know.
Straight after the hearing, Waring headed directly for Plantation’s office in Fenchurch Street to deliver the court Order in person. At a meeting of the board, it was explained that no new business would be accepted, all payments out of the company were suspended, Waring was now in charge of the whole operation and all personnel would be answerable to him. At the earliest opportunity, he would be conducting a thorough review of the company’s business and the claims made on it, to maintain an “orderly resolution of the company’s affairs”, as he put it.
An hour later, all of the company’s employees were assembled including Simon Wells and the few underwriters who hadn’t already left. They were told that for the time being, no-one would lose their job. But the writing was on the wall : there would be only a limited number of positions as time went on. At the end of the announcement, Waring asked if there were any questions.
“I heard that Robert Ashby was in the process of saving the company,” said one of the internal accountants. “What happened ?”
Waring tried not to appear smug. “Regrettably, Mr Ashby was unsuccessful and I’m afraid that the board had no other alternative than to close the company down.”
The late final edition of the Evening Standard reported that Plantation had finally reached the end of its rope. Thousands of policyholders would be affected. One of the country’s largest insurers had collapsed. Questions would be asked in Parliament.
On various commuter trains heading into the depths of Essex, Surrey, Middlesex and Hertfordshire and in the pubs around Eastcheap, hundreds of brokers and underwriters talked of nothing else. The general view was that retribution had now been delivered to the Ashbys as turncoats and back-stabbers who had betrayed their business partners. And so perish all traitors. This was the general consensus that evening.
During the coming days when sobriety had returned, these same professionals realised that far from ending, Plantation’s persecution of Welch in the Victor Oil claim in New York might go on. Added to that, where Plantation was due to pay out on other claims or where it shared a percentage of the same risk as others had, negotiations would not be so gentlemanly as in the past. The liquidator would save every penny he could. Plantation in liquidation, would no longer be a soft touch or open to appeal of the old pal’s act. It was then that they realised, perhaps it might have been better if Plantation hadn’t been shut down after all.
Plantation A Legal Thriller Page 91