Knighthead Master Fund LP & Ors v The Bank of New York Mellon & Anor [2015] EWHC 270 (Ch) (13 February 2015)

Knighthead Master Fund LP & Ors v The Bank of New York Mellon & Anor [2015] EWHC 270 (Ch) (13 February 2015)

The court declares that the €225 million transferred by the Republic of Argentina to the trustee is held on the trusts declared by the Trust Indenture governed by English law; US injunction does not affect the status of the funds under English law.

Citation
[2015] EWHC 270 (Ch)
Parties
Claimant/applicant: Knighthead Master Fund LP; Claimant/applicant: RGY Investments LLC; Claimant/applicant: Quantum Partners LP; Claimant/applicant: Hayman Capital Master Fund LP; Defendant/respondent: The Bank of New York Mellon; Defendant/respondent: The Bank of New York Depositary (Nominees) Limited
Jurisdiction
England and Wales
Judgment Date
13 February 2015
Procedural Posture
Interim Application for Declarations / Judgment on Application for Interim Declarations
Outcome
First interim declaration granted; second interim declaration and direction to trustee refused.
Legal Topics
Trustee Obligations, Jurisdiction, Foreign Injunctions, Sovereign Debt, Declaratory Relief
Trusts Banking International Law Trustee Obligations Jurisdiction Foreign Injunctions Sovereign Debt Declaratory Relief

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 5 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Knighthead Master Fund LP

Claimant/applicant

RGY Investments LLC

Claimant/applicant

Quantum Partners LP

Claimant/applicant

Hayman Capital Master Fund LP

Claimant/applicant

The Bank of New York Mellon

Defendant/respondent

The Bank of New York Depositary (Nominees) Limited

Defendant/respondent

Procedural Posture

Interim Application for Declarations / Judgment on Application for Interim Declarations

Legal Issues

  1. 1 Whether funds transferred by the Republic of Argentina to the trustee are held on trust under English law
  2. 2 Whether trustee's obligations under English law are affected by US injunctions
  3. 3 Whether English court should make declarations regarding status of funds and trustee obligations

Ratio Decidendi

The court declares that the €225 million transferred by the Republic of Argentina to the trustee is held on the trusts declared by the Trust Indenture governed by English law; US injunction does not affect the status of the funds under English law.

Court Disposition

First interim declaration granted; second interim declaration and direction to trustee refused.

Orders

  • Declaration that €225 million transferred by the Republic of Argentina to the trustee is held on the trusts declared by the Trust Indenture governed by English law.