The Law Debenture Trust Corporation Plc, Re [2020] EWHC 1774 (Ch) (09 July 2020)

The Law Debenture Trust Corporation Plc, Re [2020] EWHC 1774 (Ch) (09 July 2020)

The Trustee has properly formed the opinion that it should not interfere with the 2019 Settlement; that opinion is one a reasonable trustee could reach based on the evidence and professional advice; there is no conflict of interest; and the objections raised do not provide sufficient reason to refuse the declaration. The court is satisfied the Trustee is acting properly and is justified in its proposed course of action.

Citation
[2020] EWHC 1774 (Ch)
Parties
Applicant/trustee: The Law Debenture Trust Corporation p.l.c.; Issuer/party to Trust Deeds: Bell Group NV; Issuer/guarantor/party to Trust Deeds: The Bell Group Limited; Party to Trust Deeds: Drayton Capital Pty Ltd; Party to Trust Deeds: Bell Group Finance Pty Ltd
Jurisdiction
England and Wales
Judgment Date
09 July 2020
Procedural Posture
Part 8 Claim (trustee Directions) / Judgment on Application for Directions and Negative Declaration
Outcome
Application granted. Negative declaration and ancillary directions made.
Legal Topics
Trustee Powers and Duties, Court Approval of Trustee Decisions, Subordinated Bonds, Settlement Approval, Confidentiality in Court Proceedings
Trusts and Equity Insolvency Banking and Finance Trustee Powers and Duties Court Approval of Trustee Decisions Subordinated Bonds Settlement Approval Confidentiality in Court Proceedings

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Parties

The Law Debenture Trust Corporation p.l.c.

Applicant/trustee

Bell Group NV

Issuer/party to Trust Deeds

The Bell Group Limited

Issuer/guarantor/party to Trust Deeds

Drayton Capital Pty Ltd

Party to Trust Deeds

Bell Group Finance Pty Ltd

Party to Trust Deeds

Procedural Posture

Part 8 Claim (trustee Directions) / Judgment on Application for Directions and Negative Declaration

Legal Issues

  1. 1 Whether the Trustee is justified in not taking steps to prevent or interfere with the 2019 Settlement
  2. 2 Whether the Trustee's proposed course of action is a proper exercise of its powers
  3. 3 Whether the court should grant a negative declaration and ancillary directions

Ratio Decidendi

The Trustee has properly formed the opinion that it should not interfere with the 2019 Settlement; that opinion is one a reasonable trustee could reach based on the evidence and professional advice; there is no conflict of interest; and the objections raised do not provide sufficient reason to refuse the declaration. The court is satisfied the Trustee is acting properly and is justified in its proposed course of action.

Court Disposition

Application granted. Negative declaration and ancillary directions made.

Orders

  • Declaration that the Trustee is acting properly and is justified in not taking steps to prevent or interfere with the 2019 Settlement.
  • Direction permitting the Trustee to consent to discontinuance of related proceedings in Western Australia and the UK.