Supreme Court confirms LBG’s right to redeem Enhanced Capital Notes

Global law firm Norton Rose Fulbright has successfully advised Lloyds Banking Group (LBG) in a matter before the UK Supreme Court (BNY Mellon Corporate Trustee Services Limited (Appellant) v LBG Capital No 1 Plc and another (Respondents) [2016] UKSC 29).

At issue in the appeal was whether LBG was entitled to redeem £3.3 billion of enhanced capital notes (ECN) and whether a regulatory review counted as a capital-disqualification event that affected the ECN investment terms.

Following an expedited process, which saw the case reach the Supreme Court less than a year from the issue of proceedings, the court today dismissed BNY Mellon’s appeal and stated that the investment terms meant that LBG had been entitled to buy back the bonds at their par value.

The Norton Rose Fulbright team in London was led by disputes partner Paul Morris assisted by Maria Sandler and Dominic Hennessy. Mark Howard QC of Brick Court and Robert Miles QC, Andrew De Mestre and Gregory Denton-Cox of 4 Stone Buildings were instructed as Counsel.

The Norton Rose Fulbright banking and finance disputes team works for a number of the most prominent banks and financial institutions across the globe, advising on all types of complex domestic and cross-border banking and finance disputes.