Finance and Banking Disputes
At a time of continued uncertainty and volatility in the financial markets, the level of risk faced by financial institutions and borrowers remains high, while the nature of risk has broadened. Banks and financial institutions face increased regulation and a growing potential for disputes. Borrowers too face a challenging landscape, with mounting pressure from lenders and the difficulties with refinancing, the options seem narrow and the solutions are not obvious.
Why we are different
The lawyers in our Finance and Banking Disputes Group are not merely external advisers to our clients, but form a core part of their business, proactively working with clients to analyse risks, protect assets, resolve disputes and therefore build their businesses. Our clients depend on our insight into financial markets, products and services, which has been developed through our close collaboration with financial institutions, investors and borrowers. We are able to draw on the expertise of a number of specialists across banking and debt finance, investment funds, regulatory, and insolvency and recovery. Our clients benefit from our unique insight into the challenges they face, because we act for all sides of the industry, from banks and other financial institutions, to borrowers and investors.
We work with banks and financial institutions to develop legal and commercial strategies tailored to our clients’ commercial needs and the challenges they face. We also represent borrowers, financial sponsors and creditors, and debt and equity investors on a range of disputes with lenders, and restructurings involving corporate and property acquisition finance.
Our focus is always on achieving our clients' commercial objectives, which means challenging conventional and accepted ways of working. We view litigation as one part of the overall strategy we devise for clients, which will offer clients a significant return on investment. When we litigate, we adopt a forceful approach and pride ourselves on our record of success.
Our clients range from investment and retail banks, asset based lenders, brokers and fund managers to insurers, financial services businesses, sponsors and creditors, debt and equity investors, and investors in financial products. Matters are often high value and involve a number of international jurisdictions. Our particular strength is in the swift and discrete resolution of highly sensitive disputes that may relate to data loss, fraud, regulatory investigations or corporate crime.
Services
Our expertise covers:
• Disputes arising from complex investment products/vehicles and funds, including fund management disputes, investor disputes, mis-selling claims and misrepresentation
• Consumer Finance, including agreements, compliance and enforcement
• Domestic and overseas financial regulation, including investigations, discipline and enforcement
• Disputes and restructurings arising from alleged breaches of covenant (e.g. solvency, LTV and interest cover covenants) under facility agreements relating to property and corporate acquisition finance
• All aspects of debt recovery, enforcement, and related insolvency issues
• Data Protection, including disclosure to credit reference agencies and CIFAS
• Disputes between asset based lenders and their customers
• Banker-customer and merchant acquirer-merchant disputes
• Credit and other payment card operations
• Trade finance disputes involving letters of credit, performance bonds, guarantees and other documentary credits
• Insurance, including travel, PPI, income protection and legal expenses
• Fraud (internal and external), asset tracing and recovery (freezing injunctions, search orders and third party disclosure orders) and AML
• Advising on standard terms and conditions, promotional material, internet services, merchant acquisition and strategic alliance agreements
Work Highlights
• Successfully represented ANGLO IRISH ASSET FINANCE PLC in the Court of Appeal in resisting an appeal by the owners of collapsed property companies against a first instance judgment refusing them security for costs against the Bank (Anglo Irish Asset Finance Plc -v- Flood & Riddell [2011] EWCA CIV 799). The Bank’s claims arose from guarantees and the Defendants counterclaimed the sum of £200 million.
• Representing BANK OF IRELAND (UK) PLC in the enforcement of personal guarantees provided as security for property acquisition finance.
• Successfully represented BAIN CAPITAL and the IDEAL STANDARD GROUP in declaratory proceedings relating to the powers of Majority Lenders and alleged events of default. Bain Capital sponsored the acquisition of Ideal Standard for US$2 billion. (Strategic Value Master Fund Ltd v. Ideal Standard International Acquisition SARL & Ors [2011] EWHC 171 (Ch)).
• Successfully settled for CREDIT SUISSE TRUST a High Court claim against an international bank in respect of advice given for the acquisition of a US$45m commercial property in Dubai.
• Advising OJSC URALSIB BANK in High Court proceedings involving rights attaching to US$100 million in loan participation notes. The Bank argues that resolutions proposed and passed by the majority noteholders affecting rights in the notes amounted to a fraud against the minority noteholders.
• Acting for RBS INVOICE FINANCE LIMITED in a number of cases including claims for fraud, breach of trust and conversion, and the enforcement of guarantees and other security. Cases often involve obtaining appropriate injunctive relief and a variety of insolvency related issues.
• Resolved for borrowers and guarantors disputes with lenders in relation to property and corporate acquisition finance. Such disputes concern issues such as alleged breaches of LTV, interest coverage and solvency covenants, as well as the validity of alleged events of default, the enforceability of relevant contractual provisions and valuations. Disputes have involved clients in many jurisdictions and loan facilities ranging from £10 million to £2 billion.
• Successfully represented AMERICAN EXPRESS in an appeal to the High Court, which is now authority for the proposition that a minor technical defect relating to the service of a default notice does not prevent a lender from taking enforcement action where the borrower has not been prejudiced (American Express Services Europe Ltd -v- Ian Karl Robert Brandon [2010]).
• Acted in the high profile market abuse case in front of the FSA's RDC that involved Winterfloods. The case was ultimately decided by the Court of Appeal, which ruled on whether certain of the market abuse offences required a mental element.
• Developed strategies for clients to deal with mass consumer mobilisation over bank and default charges, PPI claims and the enforceability of consumer credit agreements, as well as interventions of the OFT.
• Acted in the first ever case in front of the Courts to challenge the FSA's role in assisting the SEC by obtaining documents in the UK. Given that there are several hundred requests to the FSA each year to assist overseas regulators, the case was of real regulatory significance.
• Successfully represented AMERICAN EXPRESS BANK and STANDARD CHARTERED BANK in proceedings before the High Court and Court of Appeal in relation to a substantial demand guarantee dispute, which formed part of a US$130m contract for the supply of electricity in Bangladesh (Greenland Bank -v- AMEX [2008] EWCH 421 (CH) and [2009] EWCA Civ 14).
• Following the fall out from the economic collapse of Iceland, we advised a number of financial institutions and other parties in respect of various disputes. This included successfully representing SCHNEIDER FOREIGN EXCHANGE in a €35m dispute with an Icelandic Bank in respect of forex swaps, and advising a major retailer in respect of the enforcement of a “repo” agreement following the administration of Kaupthing Singer & Friedlander.
• Appointed by the Court to be a representative respondent in the first case (Global Trader) to come before the Courts on the complex articulation of the FSA rules and the insolvency rules.
• Engaged by investment banks to advise individuals who have faced investigation in relation to major prosecution and regulatory enquiries in Italy, Germany and Hungary.