In the Matter of An Application for Directions By Golden Belt 1 Sukuk Company B.S.C. (C) & Anor [2021] EWHC 2629 (Ch) (30 September 2021)

In the Matter of An Application for Directions By Golden Belt 1 Sukuk Company B.S.C. (C) & Anor [2021] EWHC 2629 (Ch) (30 September 2021)

The Declaration of Trust and Agency confers absolute and uncontrolled discretion on the Trustee and Delegate to compromise claims and vote in restructuring proceedings, including accepting less than the full amount due, unless expressly restricted; Schedule 3 limitations on Certificateholder resolutions do not impliedly restrict these powers.

Citation
[2021] EWHC 2629 (Ch)
Parties
Claimant: Golden Belt 1 Sukuk Company B. S. C. (c) (in liquidation); Claimant: Citicorp Trustee Company Limited
Jurisdiction
England and Wales
Judgment Date
30 September 2021
Procedural Posture
Part 8 Claim for Directions / Judgment After Hearing
Outcome
Declarations granted in favour of claimants
Legal Topics
Trustee Powers, Sukuk Structure, Settlement Agreements, Financial Restructuring, Certificateholder Rights
Trusts Finance Insolvency Contract Trustee Powers Sukuk Structure Settlement Agreements Financial Restructuring +1 more

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Parties

Golden Belt 1 Sukuk Company B. S. C. (c) (in liquidation)

Claimant

Citicorp Trustee Company Limited

Claimant

Procedural Posture

Part 8 Claim for Directions / Judgment After Hearing

Legal Issues

  1. 1 Whether claimants have power under the Declaration of Trust and Agency to enter into a settlement agreement for less than the amount due under the English Judgment
  2. 2 Whether claimants have power to vote in favour of a restructuring proposal in the KSA Reorganisation Proceedings resulting in less than full recovery

Ratio Decidendi

The Declaration of Trust and Agency confers absolute and uncontrolled discretion on the Trustee and Delegate to compromise claims and vote in restructuring proceedings, including accepting less than the full amount due, unless expressly restricted; Schedule 3 limitations on Certificateholder resolutions do not impliedly restrict these powers.

Court Disposition

Declarations granted in favour of claimants

Orders

  • Claimants have power under the DTA to enter into a settlement agreement with Saad and Maan for less than the amount due under the English Judgment.
  • Claimants have power under the DTA to vote in favour of a restructuring proposal in the KSA Reorganisation Proceedings resulting in less than full recovery.