The Class X Factor: It's A NO From The Chancellor

It's not been a good month for Class X Noteholders. Following the judgment in the Windermere VII case (see our commentary here) in which Snowden J found against the Class X Noteholder, the Chancellor of the High Court, Etherton J, in Titan Europe 2006-1 P.L.C. and others [2016] EWHC 969 (Ch) similarly rejected the arguments put forward by the Class X Noteholders.

The full judgment can found here.

The Dispute

The case concerned four transactions in the Titan series of CMBS transactions and in particular the interpretation of certain contractual provisions which impact the entitlement of the Class X Noteholder in those securitisations. The cases had originally been consolidated with separate proceedings in Titan Europe 2006-3 P.L.C. but those were ultimately settled prior to trial – see here.