UK court makes landmark ruling on CLO downgrade triggers

By James Harvey

Friday, August 01, 2014

Equity investors in 2006 CLO Harbourmaster Pro Rata 2 have won an appeal against a UK High Court ruling prohibiting post-reinvestment trading

Subscriber-only article

This article is available only to Creditflux subscribers and free trial users within 30 days of publication.

Already a subscriber? Not logged in? Click here to login.

If you have not already done so,
you may request a FREE TRIAL by clicking here

This trial will give you:
  • 4-weeks' free online access to our
    most recent subscriber-only articles
  • Daily breaking news alert sent by email
  • A print copy of Creditflux

If you currently have a free trial, you will see this message when you try to view articles older than 30 days.

TAGS: Law suits

View details on CLO-i: Harbourmaster Pro Rata 2

Comment by: Mike Peterson. Posted 9 years ago [2014-08-04 10:00:36]

To clarify, in answer to the reader below, the earlier court ruling said there was only one correct grammatical interpretation of "has not been downgraded", whereas the appeal court said it could be read both ways (and therefore the court should decide which made most sense in terms of economics and common sense).

Comment by: Anonymous. Posted 9 years ago [2014-08-02 20:37:19]

Odd ruling? One may read the phrase "has not been downgraded" both ways. I'm surprised one court would reverse an earlier court ruling given the likely absence of direct evidence for either interpretation.

Related Stories

CLOs

more stories...