Client Alert

UPDATE: The Insolvency Point of No Return for Securitisation Issuers

March 08, 2011

Karl Clowry, Conor Downey, Liam Mills & Charles Roberts

On 7 March 2011, the Court of Appeal delivered judgment on an appeal and a cross-appeal from a decision of the Chancellor of the High Court in the case of BNY Corporate Trustee Services Ltd v Eurosail UK 2007-3BL PLC & Ors [2010] EWHC 2005.

Both the appeal and cross-appeal concerned questions of interpretation with respect to the terms of interest bearing notes, due 2027 and 2045 (the Notes) issued by Eurosail-UK 2007-3BL plc (the Issuer), and more specifically, the effect a post enforcement call option agreement (PECO) has on the determination of a securitisation issuers solvency.

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