Jersey Court sanctions payment by liquidators to insolvent Greek bank

In the matter of Aspis Jersey Ltd (10 September 2013), Mourant Ozannes (instructed by Clyde & Co LLP in the UK) acted for the liquidator of T Bank SA (previously known as Aspis Bank SA), one of the first Greek banks to enter insolvency following the recent financial crisis. The application was made by the liquidators of a Jersey SPV that had been used as a vehicle to raise capital for T Bank via the issue of certain preferred securities.

The liquidators sought approval by the Jersey Court of a proposed payment to T Bank (as the ordinary shareholder in the SPV) of surplus funds arising out of the SPV’s solvent winding up. The payment was to be made to T Bank instead of the holders of the preferred securities on the basis of Jersey and Greek law advice.

Under the terms of the securities the relevant question was how any claims by the holders of those securities would rank in the insolvency of T Bank had they been issued by T Bank itself rather than through the Jersey SPV…

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