Speed Read

  1. Classes – turnover agreement was between creditors and not with the company, so neither it nor lock up changed rights being compromised
  2. Even if it had, judge found that rights were not so dissimilar – judge considered at a high level what FMS would suffer on liquidation compared with turnover and found that this would cause all reasonable senior lenders to “unite in a common cause”
  3. New Obligations – although not decided, concern raised by judge about ability of scheme to impose new obligations to indemnify new guarantees, at least directly. New obligation therefore deleted from scheme prior to sanction
  4. Stay provisons – scheme provisions preventing senior lenders taking action overseas deleted prior to sanction. FMS therefore free to commence actions in Germany
  5. Court confirmed jurisdiction over overseas companies and effect of law change to establish sufficient connection
  6. Court of Appeal has granted leave to appeal, to be heard in December

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Bank of England’s New Strategy for Resolving Failing Financial Institutions

November 10, 2014

On 23 October 2014, the Bank of England published its strategy for resolving failing financial institutions in an orderly manner. The Bank of England’s new publication outlines the three stages of resolution – stabilisation, restructuring and exit from resolution – and sets out exactly how the Bank would use its “toolkit” of resolution measures in […]

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Courtroom drama: Argentinian sovereign debt

October 22, 2014

In July 2014, Argentina defaulted on a $539m interest payment on its sovereign debt in the latest round of its ongoing legal dispute with bondholders. By any usual standards, the dealings between Argentina and a minority of its bondholders ought to have been a low-key last act to the drama of the country’s 2001 default. […]

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UK High Court approval of client money resolution agreement

July 4, 2014

In the latest landmark achievement in the MF Global UK Limited (in special administration) (MFG UK) case, the High Court has approved a ground-breaking settlement agreement which will help facilitate the final distribution and closure of the approximately $1 billion client money pool held by MFG UK. Prior to its entry into administration, MFG UK […]

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Weil’s London Restructuring team wins “Restructuring Team of the Year” at the 2014 Lawyer Awards

June 26, 2014

Weil’s London Restructuring team has been named “Restructuring Team of the Year” for its lead role instructing KPMG as Special Administrators in the ground-breaking and “historic” case of MF Global (MFG) UK’s special administration, at The 2014 Lawyer Awards ceremony held last night at London’s Grosvenor House Hotel. The award follows a hugely successful six […]

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