provided that, subject to the payment of preferential liabilities, the scheme assets should be distributed pari passu between the scheme creditors broadly on the same basis as if Atlantic were in liquidation. Neither the main action nor the B.Z.W. action has yet come to trial. In these proceedings the administrators have applied to the court by originating summons for directions (a) whether the damages and costs recoverable by B. & C. and B.Z.W. if the actions succeed will be subordinated to the claims of the other creditors of Atlantic by virtue of being sums due to a "member of the company (in his character of a member)" within section 74(2)(f) of the Insolvency Act 1986 and (b) if so, whether the subordinated claims of B. & C. and B.Z.W. fall to be treated as scheme liabilities under the scheme of arrangement. In one sense, the originating summons raises hypothetical questions since, unless the main action and the B.Z.W. action succeed, the priority of those claims will not be a material factor. However, the courts below and your Lordships were satisfied that it is proper to decide these points at the present time. The claims in the main action and the B.Z.W. action, if successful, may give rise to enormous damages (in the region of £500m.). The status of the claims in these actions vis-à-vis the other creditors of Atlantic has an immediate and profound impact on the way in which the scheme of arrangement is now to be administered. The trial judge, Robert Walker J. [1995] 1 B.C.L.C. 686 held, first, that B. & C.'s claim was not subordinated to the claims of the other creditors; second, that B.Z.W.'s claim was not so subordinated; third, that if contrary to his views such claims were subordinated they did not rank as scheme liabilities under the scheme of arrangement. The administrators appealed to the Court of Appeal against the judge's decision in relation to the B. & C. claim but not against his decision on the B.Z.W. claim. B. & C. cross-appealed against the judge's decision on the question whether its claims were scheme liabilities. The Court of Appeal (Russell, Hirst and Peter Gibson L.JJ.), ante, pp. 304G et seq. upheld the judge on both points and dismissed both the appeal and the cross-appeal. B. & C. has not appealed to your Lordships against the decision on its cross-appeal by the Court