Law Debenture Trust Corporation Plc v Concord Trust & Ors Rev 1 [2007] EWHC 1380 (Ch) (15 June 2007)

Law Debenture Trust Corporation Plc v Concord Trust & Ors Rev 1 [2007] EWHC 1380 (Ch) (15 June 2007)

Elektrim is not entitled to redemption of the security or distribution of funds until all amounts due, including the Trustee's costs and provision for contingent liabilities, are paid or secured to the Trustee's satisfaction. Payment to the Trustee does not constitute redemption of the bonds until the Trustee is able and obliged to pay the bondholders. The PAK shares never became security as required consents were not obtained, and Elektrim has no actionable claim for conversion against the Trustee.

Citation
[2007] EWHC 1380 (Ch)
Parties
Claimant: The Law Debenture Trust Corporation plc; First Defendant: Concord Trust; Second Defendant: Acciona S.A.; Third Defendant: Elektrim S.A.; Fourth Defendant: Vivendi Holdings I Corp
Jurisdiction
England and Wales
Judgment Date
15 June 2007
Procedural Posture
Chancery Division Civil Claim / Judgment After Trial
Outcome
Claim dismissed in respect of Elektrim's entitlement to redeem security or require distribution; Trustee entitled to retain funds for costs and contingent liabilities; Elektrim's claim to PAK shares rejected.
Legal Topics
Trustee Indemnity, Redemption of Bonds, Security Interests, Conversion, Distribution of Trust Funds, Contingent Liabilities
Trusts Securities Banking and Finance Contract Trustee Indemnity Redemption of Bonds Security Interests Conversion +2 more

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Parties

The Law Debenture Trust Corporation plc

Claimant

Concord Trust

First Defendant

Acciona S.A.

Second Defendant

Elektrim S.A.

Third Defendant

Vivendi Holdings I Corp

Fourth Defendant

Procedural Posture

Chancery Division Civil Claim / Judgment After Trial

Legal Issues

  1. 1 Whether payment by Elektrim of €525 million on 26 October 2006 redeemed the bonds
  2. 2 Whether the Trustee is obliged to release security to Elektrim
  3. 3 Whether the Trustee must distribute monies to bondholders

Ratio Decidendi

Elektrim is not entitled to redemption of the security or distribution of funds until all amounts due, including the Trustee's costs and provision for contingent liabilities, are paid or secured to the Trustee's satisfaction. Payment to the Trustee does not constitute redemption of the bonds until the Trustee is able and obliged to pay the bondholders. The PAK shares never became security as required consents were not obtained, and Elektrim has no actionable claim for conversion against the Trustee.

Court Disposition

Claim dismissed in respect of Elektrim's entitlement to redeem security or require distribution; Trustee entitled to retain funds for costs and contingent liabilities; Elektrim's claim to PAK shares rejected.

Orders

  • Elektrim not entitled to redemption of security or distribution of funds until all secured sums and provision for contingent liabilities are made to Trustee's satisfaction.
  • Trustee entitled to retain funds for indemnity and costs.