The Law Debenture Trust Corporation Plc, Re

The Law Debenture Trust Corporation Plc, Re

The Trustee is justified in not taking steps to prevent or interfere with the 2019 Settlement. The Trustee has properly formed its opinion, acted within its powers, relied on appropriate professional advice, and there is no conflict of interest. The objections raised do not provide sufficient reason to refuse the declaration. The hearing was properly held in private due to confidentiality concerns.

Parties
Applicant/trustee: The Law Debenture Trust Corporation p.l.c.; Issuer/respondent (not Party to Application): Bell Group NV; Issuer/respondent (not Party to Application): The Bell Group Limited; Issuer/respondent (not Party to Application): Bell Group Finance Pty Ltd; Issuer/respondent (not Party to Application): Drayton Capital Pty Ltd; Bondholder/interested Party: ICWA (Insurance Commission of Western Australia); Funding Creditor/interested Party: Plaza B.V.; Bondholder/interested Party: Blue Rock Assets Ltd; Objecting Bondholder: Mr Basil Vasiliou; Objecting Bondholder: Lonsin Global Credit Fund Ltd
Jurisdiction
England and Wales
Judgment Date
09 July 2020
Procedural Posture
Part 8 Claim (trustee Directions) / Judgment on Application for Directions/negative Declaration
Outcome
Application granted
Legal Topics
Trustee Powers and Duties, Court Approval of Trustee Decisions, Bondholder Rights, Subordination and Turnover Trusts, Confidentiality in Proceedings
Trust Law Insolvency Law Civil Procedure Trustee Powers and Duties Court Approval of Trustee Decisions Bondholder Rights Subordination and Turnover Trusts Confidentiality in Proceedings

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 5 Authorities cited 12 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

The Law Debenture Trust Corporation p.l.c.

Applicant/trustee

Bell Group NV

Issuer/respondent (not Party to Application)

The Bell Group Limited

Issuer/respondent (not Party to Application)

Bell Group Finance Pty Ltd

Issuer/respondent (not Party to Application)

Drayton Capital Pty Ltd

Issuer/respondent (not Party to Application)

ICWA (Insurance Commission of Western Australia)

Bondholder/interested Party

Plaza B.V.

Funding Creditor/interested Party

Blue Rock Assets Ltd

Bondholder/interested Party

Mr Basil Vasiliou

Objecting Bondholder

Lonsin Global Credit Fund Ltd

Objecting Bondholder

Procedural Posture

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

Legal Issues

  1. 1 Whether the Trustee is justified in not taking steps to prevent or interfere with the 2019 Settlement under the relevant trust deeds
  2. 2 Whether the Trustee's proposed course of action is a proper exercise of its powers
  3. 3 Whether the objections of certain bondholders warrant refusal of the declaration sought

Ratio Decidendi

The Trustee is justified in not taking steps to prevent or interfere with the 2019 Settlement. The Trustee has properly formed its opinion, acted within its powers, relied on appropriate professional advice, and there is no conflict of interest. The objections raised do not provide sufficient reason to refuse the declaration. The hearing was properly held in private due to confidentiality concerns.

Court Disposition

Application granted

Orders

  • Declaration that the Trustee is justified in not taking steps to prevent or interfere with the 2019 Settlement (Negative Declaration)
  • Direction that the Trustee may consent to discontinuance of the Distribution Proceedings and UK appeal with no order as to costs