Loans, Breach of Contract, UK

English High Court decides that a letter of comfort creates legal relations

Hogan Lovells on 7/17/2025

A version of this article first appeared in Butterworths Journal of International Banking and Financial Law in June 2025. In the case of IDBI Bank Limited v Axcel Sunshine Limited & Ors the English High Court held that,...more

Third Party Rights - Welcome Guidance from the High Court

BCLP on 5/22/2025

There is a “a dearth of case law” on s1(1) of the Contracts (Rights of Third Parties) Act 1999 (Act), as observed by Lenon KC, the judge in the case of HNW Lending Ltd v Lawrence [2025] EWHC 908 (Ch). Whilst an accurate...more

Good faith in secured finance?

A&O Shearman on 2/27/2025

The court implied a good faith term constraining a lender’s discretion to refuse a borrower's request to dispose of assets in a secured financing context. A power to consider requests for disposals - A facility agreement...more

An interest-ing question: when is a default interest rate a penalty?

A&O Shearman on 7/15/2024

The Court of Appeal has affirmed a three-step test for penalty clauses: (1) is it a secondary obligation; (2) does the clause protect a legitimate interest; and (3) is it extortionate by reference to the legitimate interest?...more

High Court Ruled That Lender Suffered No Loss Despite Negligent Valuation of Security

Cadwalader, Wickersham & Taft LLP on 12/18/2023

On 27 September 2023, the British High Court ruled that the claimant relying on the defendant’s report suffered no actionable loss, despite the defendant’s admission of negligence. ...more

Liquidity, MAC and Cessation of Business in English Law Loan Financings

A&O Shearman on 3/27/2020

The COVID-19 pandemic and the responses adopted by governments around the world to mitigate its human cost will have a considerable impact on economic activity. We are seeing the forced closures of businesses and restrictions...more