BNY Corporate Trustee Services Ltd v Eurosail-UK 2007-3BL Plc and Others: CA 7 Mar 2011

The court was asked questions to interpret the terms of interest-bearing notes, which were issued by Eurosail-UK 2007-3BL PLC, a special purpose vehicle formed to hold income-producing assets, consisting of mortgage loans, to be used to meet the liabilities on the Notes, and in particular whether the rspondent had been insolvent when entering into them.
Held: The appeal and cross failed. The meaning to be given to the language used by the parties was not open to doubt. To say that to give effect to that meaning is to surrender to legal form over commercial substance amounts to an invitation to depart from the settled role of commercial good sense.
Lord Neuberger MR
[2011] BCC 399, [2011] Bus LR 1359, [2011] 1 WLR 2524, [2011] EWCA Civ 227
Insolvency Act 1986 123
England and Wales
Appeal fromBNY Corporate Trustee Services Ltd v Eurosail-UK 2007-3BL Plc and Others ChD 30-Jul-2010
The parties disputed whether the respondent was in law insolvent at the time it entered into financial transactions with it.
Held: The Court rejected the Noteholders’ submission that Eurosail was plainly insolvent for the purposes of section . .

Cited by:
Appeal fromBNY Corporate Trustee Services Ltd and Others v Neuberger SC 9-May-2013
Potential Insolvency effect under guarantee
The various parties had entered into complex and substantial financial arrangements incorporating guarantees. The guarantees were conditional upon the guaranteed party being solvent. The parties disputed whether a party which would otherwise be . .

These lists may be incomplete.
Updated: 05 March 2021; Ref: scu.430359