Exit consents unlawful under English law

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On 27 July 2012, the Chancery Division of the English High Court upheld a challenge to the legality of an exit consent on the basis that it was oppressive towards the minority bondholders and at variance with the purposes for which majorities in a class are given power to bind minorities. The court also upheld a separate claim that the use of the exit consent in issue was caught by a prohibition in the applicable trust deed against the issuer voting bonds beneficially held by it or for its own account.

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