Exit consents in English law-governed bonds

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In an important judgment handed down on Friday 27 July 2012 (Assénagon Asset Management S.A. and Irish Bank Resolution Corporation Limited (formerly Anglo Irish Bank Corporation Limited)) Justice Briggs, sitting at the High Court, Chancery Division, upheld a challenge to the commonly used restructuring technique of “exit consents” used in English law governed bonds on the basis that this technique was an abuse of power by the majority and “at variance with the purposes for which majorities in a class are given power to bind minorities”.

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