BNY Corporate Trustee Services Ltd v Eurosail- UK 2007- 3BL Plc & Ors [2010] EWHC 2005 (Ch) (30 July 2010)

BNY Corporate Trustee Services Ltd v Eurosail- UK 2007- 3BL Plc & Ors [2010] EWHC 2005 (Ch) (30 July 2010)

Eurosail is not unable to pay its debts within the meaning of section 123(2) Insolvency Act 1986 for the purposes of Condition 9(a)(iii), as its assets exceed its liabilities when properly valued, and contingent/prospective liabilities do not require aggregation at face value; PECO does not affect this determination.

Citation
[2010] EWHC 2005 (Ch)
Parties
Claimant: BNY Corporate Trustee Services Limited; 1st Defendant: Eurosail-UK 2007-3BL PLC; 2nd Defendant: Natixis; 3rd Defendant: Neuberger Berman Europe Ltd (on behalf of Sealink Funding Ltd); 4th Defendant: Orpington Structured Finance I Ltd; 5th Defendant: Municipality Finance PLC; 6th Defendant: Carrera Capital Finance Ltd; 7th Defendant: Patron EMF S. A. R. L.; 8th Defendant: Pamplona Credit Opportunities Master Fund
Jurisdiction
England and Wales
Judgment Date
30 July 2010
Procedural Posture
Part 8 Claim / Judgment on Preliminary Questions
Outcome
Declaration in favour of Issuer and A2 Noteholders; Eurosail is not unable to pay its debts under s.123(2) for purposes of Condition 9(a)(iii).
Legal Topics
Balance Sheet Insolvency, Contingent and Prospective Liabilities, Securitisation, Events of Default, PECO (post Enforcement Call Option Agreement)
Insolvency Financial Services Contract Balance Sheet Insolvency Contingent and Prospective Liabilities Securitisation Events of Default PECO (post Enforcement Call Option Agreement)

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Parties

BNY Corporate Trustee Services Limited

Claimant

Eurosail-UK 2007-3BL PLC

1st Defendant

Natixis

2nd Defendant

Neuberger Berman Europe Ltd (on behalf of Sealink Funding Ltd)

3rd Defendant

Orpington Structured Finance I Ltd

4th Defendant

Municipality Finance PLC

5th Defendant

Carrera Capital Finance Ltd

6th Defendant

Patron EMF S. A. R. L.

7th Defendant

Pamplona Credit Opportunities Master Fund

8th Defendant

Procedural Posture

Part 8 Claim / Judgment on Preliminary Questions

Legal Issues

  1. 1 Whether Eurosail is unable to pay its debts within the meaning of section 123(2) Insolvency Act 1986 for the purposes of Condition 9(a)(iii) of the Conditions
  2. 2 Whether the PECO affects the determination under section 123(2)

Ratio Decidendi

Eurosail is not unable to pay its debts within the meaning of section 123(2) Insolvency Act 1986 for the purposes of Condition 9(a)(iii), as its assets exceed its liabilities when properly valued, and contingent/prospective liabilities do not require aggregation at face value; PECO does not affect this determination.

Court Disposition

Declaration in favour of Issuer and A2 Noteholders; Eurosail is not unable to pay its debts under s.123(2) for purposes of Condition 9(a)(iii).

Orders

  • Declaration that Eurosail is not unable to pay its debts within the meaning of section 123(2) Insolvency Act 1986 for the purposes of Condition 9(a)(iii) of the Conditions.
  • Court to hear counsel on form of order and any further matters.