Fomento De Construcciones Y Contratas S.A. v Black Diamond Offshore Ltd & Ors (Rev 1)

Fomento De Construcciones Y Contratas S.A. v Black Diamond Offshore Ltd & Ors (Rev 1)

An Event of Default under clause 10(f) of the Loan Note is triggered by a proposed or actual arrangement or composition with or for the benefit of relevant creditors in respect of any debts, not limited to all creditors or all debts. The drafting intentionally allows for arrangements with any relevant creditors to constitute a default, and the judge's interpretation is upheld.

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
Civil Appeal / Judgment on Appeal
Outcome
appeal dismissed
Legal Topics
Event of Default, Interpretation of Loan Note, Arrangement With Creditors, Cross Default Provisions
Contract Law Insolvency Law Event of Default Interpretation of Loan Note Arrangement With Creditors Cross Default Provisions

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Parties

Fomento De Construcciones Y Contratas S. A.

Appellant

Black Diamond Offshore Ltd and Ors

Respondents

Procedural Posture

Civil Appeal / Judgment on Appeal

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

An Event of Default under clause 10(f) of the Loan Note is triggered by a proposed or actual arrangement or composition with or for the benefit of relevant creditors in respect of any debts, not limited to all creditors or all debts. The drafting intentionally allows for arrangements with any relevant creditors to constitute a default, and the judge's interpretation is upheld.

Court Disposition

appeal dismissed

Orders

  • The appeal is dismissed.