BITE SIZE KNOW HOW FROM THE ENGLISH COURTS 

Appeals

BITE SIZE KNOW HOW FROM THE ENGLISH COURTS

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On Wednesday 29 April the Outer House of the Court of Session in Edinburgh issued an opinion sanctioning two schemes of arrangement proposed by Premier Oil Plc and Premier Oil UK Limited (together, Premier Oil) (the Schemes). The Court addressed multiple grounds of challenge and did so without hearing live evidence, despite disputes of fact between the parties.

Under the equity of exoneration, where jointly owned property is charged to secure the indebtedness of one joint owner, the other joint owner is presumed, in the absence of evidence to the contrary, to be acting as a surety only, and is entitled to be exonerated by the principal debtor. This long established principle remains relevant in the modern day, as was recently demonstrated in Day v Shaw.