Court in England confirms limited payment scheme on PrivatBank eurobonds – bank
The High Court of Justice handed down a public judgment in respect of and pursuant to the Partial Final Awards (the Awards) issued by the Tribunal on June 13, 2019 in the ongoing LCIA arbitration proceedings concerning the PrivatBank eurobonds issued in 2010 and 2013. This decision, which effectively upholds the Awards and the Tribunal’s scheme for payment under them, means that, should the Awards (which in any event remain contingent) come into effect in due course, PrivatBank will only be required to make payments under the Notes in respect of a limited class of holders.
"As a result, even if PrivatBank comes to be required to make any payments, such payments will be substantially less than the total sums claimed by the Trustee in the arbitration proceedings. If PrivatBank's 'bail-in' defence succeeds in due course, it will not be required to make any payments at all," the bank said.
"The English Court has held that, against the background of the illegality of the Former Owners affecting the Notes which was found conclusively by the Tribunal and resulted in its Awards, and having regard to the terms of the Trust Deeds to which the Trustee is subject, the Trustee is at liberty to make payments in accordance with the payment scheme under the Awards and will not incur liability to ultimate account holders in doing so," PrivatBank said.