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ARTICLE · 08 NOVEMBER 2022

When Is An Event Of Default "Continuing"?

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Over a decade after Lehman's insolvency, the English High Court handed down a key judgement in Grant v FR Acquisitions Corporation (Europe) Ltd [1] on 11 October 2022.

United KingdomInsolvency/Bankruptcy/Re-Structuring
Charles Wakiwaka
Charles Wakiwaka
Jennifer J. Kafcas
Jennifer J. Kafcas
Lauren Blaber
Lauren Blaber
Alvino Van Schalkwyk
Alvino Van Schalkwyk

Over a decade after Lehman's insolvency, the English High Court handed down a key judgement in Grant v FR Acquisitions Corporation (Europe) Ltd 1 on 11 October 2022. The judgement provides commentary on when certain Events of Default have occurred and are "continuing".

Although the court addressed these issues in the context of interest rate swaps entered into pursuant to an ISDA Master Agreement (the "Transactions") and the impact of Lehman's UK entity, LBIE, coming out of administration, the judgement may have implications beyond the derivatives market, for example in the context of financing agreements, corporate documentation, and distressed debt trading, as well as cross-border restructuring or insolvency situations.

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