A recent High Court decision will bring increased discipline to
the commercial reality and market practice of dealing with the
waiver of any condition precedent required under the terms of a
transaction.
Background
In Irish Bank Resolution Corporation Limited (IBRC) v
Cambourne Investments Inc & Ors, IBRC was seeking to
recover debts of over 10 million euro it had lent pursuant to two
facility letters to a company called Cambourne Investments Inc.
(Cambourne) in respect of the proposed purchase by Cambourne of
several units in the Parnell Centre in Dublin. Century City
and Peter Curistan were guarantors of the Cambourne debts.
Key issue
In essence, the facilities were not to be drawndown unless two
conditions precedent, (firstly, an updated written valuation in
respect of the units had to be provided by a valuer to IBRC and
secondly, the loan to value ratio had to remain at a certain level)
were provided and complied with. IBRC waived both
