In the English case Lehman Brothers International (Europe) v Exxonmobil Financial Services BV  EWHC 2699 (Comm), the High Court considered the meaning of “close of business” for a commercial bank in London. In a decision which demonstrates that where certainty is desired in commercial contracts, parties should specify a definite deadline and avoid ambiguous phrases such as ‘close of business’, the Court held that 7pm could be “close of business”. Continue reading
It has long been considered that lenders under a syndicated facility retain a right to seek to recover their portion of a loan directly following a payment default, typically by seeking the winding up of obligors. This is based on the several nature of the rights of finance parties which appears in clause 2 of the standard LMA terms.
However, a recent first instance decision of the Hong Kong court in Charmway Hong Kong Investment Limited and others v Fortunesea (Cayman) Ltd and others (unreported) found that a syndicated facility based on LMA standard terms creates an aggregate loan, rather than individual loans due to the lenders. Continue reading