Lloyd’s made what it described as a “final offer” to discount outstanding liabilities by as much as 70 percent to the remaining “Names” who have not voluntarily agreed to its reconstruction and Renewal Plan.
Following Judge Peter Cresswell’s recent favorable decision in the Jaffray case, which cleared Lloyd’s of allegations of fraud brought by Sir William Jaffray and some 200 other Names, no legal barrier remained to Lloyd’s claims against the assets of individual Names.
The settlement offer, made in the London High Court, accepts Judge Cresswell’s suggestion to establish an independent three member panel to examine the financial status of individual Names. Lloyd’s will initially offer to settle outstanding liabilities for 35 percent of the amount owed, and will offer a further 5 percent reduction for Names with particularly large losses.
Following review by the panel, each Name will be contacted in January, and given a chance to review details of the offer relative to their position. But Lloyd’s warned that the offers will expire at the end of February, and that it would not extend the deadline, leaving Names who reject the offer, liable for the full amount of their debt.
Initial reaction from the Names was mixed. According to an article in London’s Financial Times, Sir William Jaffray and others said they would continue the legal action they have instituted before the European Court alleging violation of human rights, and would not accept the settlement.
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