British Aviation Insurance Company (BAIC) is to appeal against the High Court's refusal to sanction its proposed solvent scheme of arrangement.

BAIC said in a statement that it is "proceeding with the first stages of appeal. In the meantime, the company will continue in run-off and pay claims as and when they become due and payable".

BAIC went into run-off in 2002 but sought court approval for a proposed solvent plan that would allow it to rapidly run off the business.

But creditors, which include both policyholders with accrued claims and policyholders with 'incurred but not reported' claims, voted against the plan's inception.

Last month Mr Justice Lewison ruled that the plan was "unfair."

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