Lloyd's plan wins majority

David Rowland, chairman of Lloyd's, said yesterday that 75 per cent of the insurance market's 34,000 members had voted in favour of a planned restructuring that would allow them to draw a line under massive losses incurred in the late 1980s and early 1990s.

The level of acceptances was revealed as Lloyd's prepared to appeal tomorrow against an injunction granted in a state of Virginia court last Friday that had threatened to derail the pounds 3.2bn rescue package.

The injunction, which demanded that Lloyd's produce more information for 93 of its American names, effectively ruled out the possibility of securing the agreement of all American members by the deadline for acceptances, set for noon on Wednesday.

Mr Rowland said yesterday: "I am confident that by the deadline the offer will have been accepted by the overwhelming majority of our members. The position we are in at the moment is that we already have, from the votes that have been cast, the knowledge that the majority of the members wish to go ahead."

Lloyd's members who have not yet accepted the deal have been warned that failing to do so will leave them outside any settlement. The deal offers Lloyd's members debt write-offs of pounds 2.1bn and a litigation settlement fund of a further pounds 1.1bn. Many US members have already accepted the offer.

An appeal against the Virginia injunction is due to be heard in the Federal Appeals Court in Baltimore, Maryland tomorrow. Failure to overturn the decision could leave Lloyd's with a funding deficit of up to pounds 200m. If that were the case it would risk failing a solvency test set by the Department of Trade and Industry and due to take place at the end of this week.

Mr Rowland remained confident of victory on appeal: "We have to remember that we've had countless actions in the United States. We won all the key ones to do with Lloyd's and I'm absolutely certain that the Court of Appeal will actually see the good sense of what we're doing and support us."

Lloyd's is understood to have several contingency plans in place to ensure the rescue package goes through. One option is to exclude the American names and replace their funding with bank borrowings.

At the heart of the Virginia ruling was a claim that American names needed more information before they could decide whether to approve the restructuring package.

Start your day with The Independent, sign up for daily news emails
News
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Payments Operations Assistant

£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...

Recruitment Genius: Telephone Debt Negotiator

£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...

Guru Careers: Communications Exec / PR Exec

£25 - £30K: Guru Careers: We are seeking a highly-motivated and ambitious Comm...

Guru Careers: Pricing Analyst

£30 - 35k: Guru Careers: We are seeking a Pricing Analyst to join a leading e-...

Day In a Page

On your feet! Spending at least two hours a day standing reduces the risk of heart attacks, cancer and diabetes, according to new research

On your feet!

Spending half the day standing 'reduces risk of heart attacks and cancer'
Liverpool close in on Milner signing

Liverpool close in on Milner signing

Reds baulk at Christian Benteke £32.5m release clause
With scores of surgeries closing, what hope is there for the David Cameron's promise of 5,000 more GPs and a 24/7 NHS?

The big NHS question

Why are there so few new GPs when so many want to study medicine?
Big knickers are back: Thongs ain't what they used to be

Thongs ain't what they used to be

Big knickers are back
Thurston Moore interview

Thurston Moore interview

On living in London, Sonic Youth and musical memoirs
In full bloom

In full bloom

Floral print womenswear
From leading man to Elephant Man, Bradley Cooper is terrific

From leading man to Elephant Man

Bradley Cooper is terrific
In this the person to restore our trust in the banks?

In this the person to restore our trust in the banks?

Dame Colette Bowe - interview
When do the creative juices dry up?

When do the creative juices dry up?

David Lodge thinks he knows
The 'Cher moment' happening across fashion just now

Fashion's Cher moment

Ageing beauty will always be more classy than all that booty
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination

Health fears over school cancer jab

Shock new Freedom of Information figures show how thousands of girls have suffered serious symptoms after routine HPV injection
Fifa President Sepp Blatter warns his opponents: 'I forgive everyone, but I don't forget'

'I forgive everyone, but I don't forget'

Fifa president Sepp Blatter issues defiant warning to opponents
Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report

Weather warning

Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report
LSD: Speaking to volunteer users of the drug as trials get underway to see if it cures depression and addiction

High hopes for LSD

Meet the volunteer users helping to see if it cures depression and addiction
German soldier who died fighting for UK in Battle of Waterloo should be removed from museum display and given dignified funeral, say historians

Saving Private Brandt

A Belgian museum's display of the skeleton of a soldier killed at Waterloo prompts calls for him to be given a dignified funeral