The High Court has ordered a liquidator’s firm to pay a proportion of the costs incurred by successful defendants following judgment in proceedings commenced by a claimant company in liquidation.
The recent Court of Appeal decision inLBI EHF v Raiffeisen Bank International AG [2018] EWCA Civ 719 affirms the wide discretion of the non-Defaulting Party to determine "fair market value" in accordance with the close-out mechanism under paragraph 10(e)(ii) of the standard Global Master Repurchase Agreement (2000 version) ("GMRA").
If 2016 ended with more questions than answers as to how Brexit would take shape, 2017 began with at least a little more clarity.
The Insolvency Regulation aims to establish procedural rules on jurisdiction and applicable law in relation to insolvency proceedings, and to aid the mutual recognition of cross-border insolvency proceedings in EU Member States. It is intended to deter parties from forum shopping within the EU in relation to insolvency proceedings. However it does not seek to harmonize substantive insolvency law.
The Court of Appeal has struck out Quincecare duty and dishonest assistance claims brought by the liquidators of a company operating a Ponzi scheme against a correspondent bank that operated various accounts for the company.
The Corporate Insolvency and Governance Act 2020 received Royal Assent and is now in force.
The High Court has ordered a liquidator's firm to pay a proportion of the costs incurred by successful defendants following judgment in proceedings commenced by a claimant company in liquidation.
Lehman Brothers Special Financing Inc. v National Power Corporation & Anor [2018] EWHC 487 (Comm) is a significant case on the calculation of Close-out Amount under the 2002 ISDA Master Agreement.
Two important points of principle arise from this judgment, which will have general application to transactions governed by the 2002 ISDA Master Agreement:
Issues will arise upon a UK exit in relation to restructuring tools such as schemes of arrangement and in relation to insolvency processes; there are also special EU insolvency rules for financial institutions which will be affected. Finally there are elements of EU financial services laws which impinge on insolvencies and remove uncertainties, such as settlement finality and financial collateral.
A speechby Sam Woods of the Bank of England (BoE) says a lot about its approach to Solvency II and leaves a lot more unsaid.
Woods said that he wanted to dispel two myths: