Meeting of Creditors

Meeting of Creditors

THE SCOTTISH LION INSURANCE COMPANY LIMITED

NOTICE OF AN INTENDED APPLICATION TO THE COURT OF SESSION, SCOTLAND

Notice is hereby given that the above-named company (“Company”) intends to apply to the Court of Session, 2 Parliament Square, Edinburgh EH1 1RQ, Scotland, for an order to convene a meeting of certain creditors of the Company (“Creditors’ Meeting”) in relation to the Scheme mentioned below. The purpose of the Creditors’ Meeting will be to consider and, if thought fit, to approve (with or without modification) a solvent scheme of arrangement between the Company and certain of its creditors pursuant to section 425 of the Companies Act 1985 of Great Britain (the “Scheme”).

Creditors affected by the Scheme (the “Scheme Creditors”) are, broadly speaking, those creditors with any claim against the Company in respect of a debt or liability under or in relation to a contract or policy of insurance, reinsurance, coinsurance or retrocession entered into by or on behalf of the Company in its capacity as insurer (a “Claim”).

The Scheme will require Scheme Creditors to submit details of Claims within 120 days of the Scheme becoming effective so that Claims can be agreed with the Company or, failing agreement, adjudicated upon by a scheme adjudicator, and the agreed or adjudicated amount paid.

The Company considers that the Scheme will offer Scheme Creditors the most effective, economical and timely method for valuing and paying their Claims, and will enable the Company to terminate run-off earlier than would otherwise be the case.

The Company is of the opinion that the rights of its Scheme Creditors are so similar as to make it possible for them to consult together with a view to their common interest. Accordingly, the Company has concluded that there is only one class of Scheme Creditors and it is therefore proposed that only one meeting of Scheme Creditors be convened for the purposes of considering and, if the Scheme Creditors think fit, approving the Scheme.

If any creditor takes the view that there is more than one class of Scheme Creditor, and that it is necessary to have separate meetings to approve the Scheme, they should communicate their concerns to the Company in writing by letter or e-mail to reach the Company at the address below on or before 13 June 2005, so that their concerns can be drawn to the attention of the Court when the Company makes its application for an order to convene a single meeting of Scheme Creditors.

Further information may be obtained by contacting:

Steve Crawley or Vanessa Robinson of The Scottish Lion Insurance Company Limited, 5th Floor, Cutlers Exchange, 123 Houndsditch, London EC3A 7PQ, United Kingdom (Tel: +44 (0)20 7626 4266, Email: solventscheme@scottishlion.co.uk), or

Bill Vince or James Allison of PricewaterhouseCoopers LLP, Plumtree Court, London EC4A 4HT, United Kingdom (Tel: +44 (0)20 7583 5000, Email: bill.t.vince@uk.pwc.com or james.allison@uk.pwc.com).