Update - Waterfall II Application (the â Applicationâ ) â Tranches A and B â Supplemental Issues â 15 December 2015

On 8 December 2015, the Joint Administrators notified creditors that the parties to the Application intend to make further written submissions on a number of issues (that update is available here).
 
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.

In accordance with the agreed timetable for written submissions on this issue, York filed its written submissions on 7 December 2015, and the following written submissions were filed yesterday:

• The Senior Creditors Group's written submissions dated 14 December 2015
• The Joint Administrators' written submissions dated 14 December 2015

Wentworth has indicated that it agrees with York's position on Supplemental Issue 1(a) and does not currently intend to lodge separate written submissions on this issue.

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