“Distressed debt in restructured entities: a second bite at the cherry” by Roger KENNELL and Patrick ELLIOT (Brown Rudnick, London)

In Global Distressed Alpha Fund I Limited Partnership v PT Bakrie Investindo1 (“Bakrie”) the facts were as follows: • The Defendant (“Investindo”) was and is an Indonesian entity and part of the Bakrie Group, which owned and controlled by the Bakrie family. • Investindo wished to raise finance by the issue of $50m 9.625% guaranteed notes (the “Notes”), which it did via a Dutch SPV in 1996 pursuant to a Fiscal Agency Agreement (the “FAA”). The Notes were due to mature in 1999 and repayment was guaranteed by Investindo under a Deed of Guarantee. Both the FAA and the Guarantee were subject to English law.
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