Fomento De Construcciones Y Contratas S.A. v Black Diamond Offshore Ltd & Ors (Rev 1) [2016] EWCA Civ 1141 (22 November 2016)

Fomento De Construcciones Y Contratas S.A. v Black Diamond Offshore Ltd & Ors (Rev 1) [2016] EWCA Civ 1141 (22 November 2016)

The phrase 'an arrangement or composition with or for the benefit of the relevant creditors in respect of any such debts' in clause 10(f) is not limited to arrangements with all creditors; it includes arrangements with any creditors in respect of any debts, and such an arrangement constitutes an Event of Default under the Loan Note.

Citation
[2016] EWCA Civ 1141
Parties
Appellant: Fomento De Construcciones Y Contratas S. A.; Respondents: Black Diamond Offshore Ltd and Ors
Jurisdiction
England and Wales
Judgment Date
22 November 2016
Procedural Posture
Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Events of Default, Loan Note Interpretation, Cross Default Clauses, Arrangement With Creditors
Contract Law Insolvency Law Commercial Law Events of Default Loan Note Interpretation Cross Default Clauses Arrangement With Creditors

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Parties

Fomento De Construcciones Y Contratas S. A.

Appellant

Black Diamond Offshore Ltd and Ors

Respondents

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether an Event of Default occurred under clause 10(f) of the Loan Note
  2. 2 Interpretation of 'arrangement or composition with or for the benefit of the relevant creditors'

Ratio Decidendi

The phrase 'an arrangement or composition with or for the benefit of the relevant creditors in respect of any such debts' in clause 10(f) is not limited to arrangements with all creditors; it includes arrangements with any creditors in respect of any debts, and such an arrangement constitutes an Event of Default under the Loan Note.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed; summary judgment in favour of claimants upheld; no change to prior orders.