Update - Waterfall II Application (the â Applicationâ ) â Tranches A and B â Supplemental Issues â 8 December 2015

Further to the judgments of Mr Justice David Richards in relation to Tranches A and B of the Application and pursuant to the consequential issues hearing before the Judge on 9 October 2015, the parties intend to make further written submissions on a number of issues.

The first of these issues (Supplemental Issue 1(a)) asks the Court:

“Whether, and in what circumstances, the words ‘the rate applicable to the debt apart from the administration’ in Rule 2.88(9) of the Rules include, in the case of a provable debt that is a close-out sum under a contract, a contractual rate of interest that began to accrue only after the close-out sum became due and payable due to action taken by the creditor after the Date of Administration”.

In light of this issue’s potential impact on the issues raised in Tranche C of the Application, the parties have agreed that it should be considered by Mr Justice Hildyard by way of written submissions in the first instance.
 
The timetable for written submissions on this issue has been agreed as follows:

• York to file written submissions by 7 December 2015;
• SCG, Wentworth and the Joint Administrators to file written submissions by 14 December 2015; and
• any party, if so advised, to file reply written submissions by 21 December 2015.

In accordance with this timetable, York filed its written submissions yesterday and these can be found here.

Further updates as to the further supplemental issues and the timetable for written submissions in respect thereof will be posted in due course. 

Should you have any queries regarding this update, please contact LBIE’s Communications and Counterparty Management team at generalqueries@lbia-eu.com.