GSO Credit -A Partners LP & Ors v Barclays Bank Plc v Barclays Bank Plc & Anor

GSO Credit -A Partners LP & Ors v Barclays Bank Plc v Barclays Bank Plc & Anor

Trades using the 2012 LMA Terms for a surety bonds facility include the economic burden of the seller’s obligations under issued surety bonds; 'funded' Purchased Assets are determined by money paid under bonds, not mere issuance; the subject matter extends to both rights and obligations corresponding to the traded portion.

Parties
Claimant: GSO Credit – A Partners LP; Claimant: GSO Palmetto Opportunistic Investment Partners LP; Claimant: GSO Special Situations Fund LP; Claimant: GSO Special Situations Overseas Master Fund Limited; Claimant: Blackstone/GSO Market Neutral Credit Master Fund LP; Defendant: Barclays Bank PLC; Third Party: HCC International Insurance Company PLC
Jurisdiction
England and Wales
Judgment Date
29 January 2016
Procedural Posture
Commercial Dispute / Judgment After Trial
Outcome
Declaration of meaning of terms in LMA documentation; parties to calculate Settlement Amount in light of judgment.
Legal Topics
Interpretation of Standard Form Documentation, Secondary Debt Trading, Surety Bonds Facility, Settlement Amount Calculation
Commercial Law Contract Law Financial Markets Interpretation of Standard Form Documentation Secondary Debt Trading Surety Bonds Facility Settlement Amount Calculation

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Parties

GSO Credit – A Partners LP

Claimant

GSO Palmetto Opportunistic Investment Partners LP

Claimant

GSO Special Situations Fund LP

Claimant

GSO Special Situations Overseas Master Fund Limited

Claimant

Blackstone/GSO Market Neutral Credit Master Fund LP

Claimant

Barclays Bank PLC

Defendant

HCC International Insurance Company PLC

Third Party

Procedural Posture

Commercial Dispute / Judgment After Trial

Legal Issues

  1. 1 What is the subject matter of trades using LMA standard form documentation for a surety bonds facility?
  2. 2 How are 'funded' and 'unfunded' portions of Purchased Assets determined under the LMA Terms?
  3. 3 Does the trade include the seller's contingent obligations under issued surety bonds?

Ratio Decidendi

Trades using the 2012 LMA Terms for a surety bonds facility include the economic burden of the seller’s obligations under issued surety bonds; 'funded' Purchased Assets are determined by money paid under bonds, not mere issuance; the subject matter extends to both rights and obligations corresponding to the traded portion.

Court Disposition

Declaration of meaning of terms in LMA documentation; parties to calculate Settlement Amount in light of judgment.

Orders

  • Court will hear further argument over calculation of Settlement Amount as required.