Update - Waterfall II Application (the "Application") – Part C Appeal – 22 May 2017

Following the judgment of Mr Justice Hildyard handed down on 5 October 2016 in respect of Part C of the Application, and pursuant to the order of Mr Justice Hildyard sealed on 16 December 2016 (the “Order”) (a copy of which can be found here), the Senior Creditor Group and Goldman Sachs International – having been given permission to appeal by Mr Justice Hildyard against certain declarations made in the Order – filed and served their respective Appellant’s Notices and Grounds of Appeal, copies of which can be found here. 

On 12 May 2017, the appellants filed and served upon the LBIE Administrators their appeal skeleton arguments, copies of which can be found below: 

• The Senior Creditor Group’s appeal skeleton argument dated 12 May 2017; and 

• Goldman Sachs International’s appeal skeleton argument dated 12 May 2017. 

On 12 May 2017, the solicitors representing the Senior Creditor Group (“SCG”) confirmed that: (a) the SCG will no longer be pursuing the appeal against declaration (i) of the Order; and (b) the two SCG members (Hutchinson Investors, LLC and Burlington Loan Management Limited) who were appealing against declarations (xxiii), (xxiv) and (xxv) of the Order will no longer be pursuing their appeal against those three declarations. Accordingly, the Part C Appeal is expected no longer to concern Issue 10 in the Application (which concerns whether the Default Rate in the ISDA Master Agreement is that of the original counterparty or a party to which the original party has transferred its rights) and Issues 20 and 21 (which relate to the German Master Agreement). 

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