Lifeline for insolvent financial lender as court approves creditors’ scheme

THE High Court has confirmed the scheme of arrangement for the survival of International Securities Trading Corporation (ISTC), which lends capital to financial institutions and was placed under court protection last November when it became insolvent due to the crisis in the credit markets.

The scheme, which comes into effect on Thursday, was approved yesterday by Mr Justice Peter Kelly in the Commercial Court. It must also be cleared by the Competition Authority.

The scheme provides for a €5m investment by Collins Stewart Europe, a subsidiary of British investment financial services group Collins Stewart, in ISTC. Collins Stewart is also proposing to raise additional convertible loan capital of €2m for development of the business.