In Grant & Ors v FR Acquisitions Corporation (Europe) Ltd & Anor (Re Lehman Brothers International (Europe)) [2022] EWHC 2532 (Ch), the English High Court ruled on an application for directions (the “Application”) made by the administrators (the “Administrators”) of Lehman Brothers International (Europe) (LBIE) relating to the construction and effect of certain bankruptcy-related events of default (“Events of Default”) specified under the ISDA Master Agreements (as defined below), specifically:
- Whether certain bankruptcy-related Events of Default specified under Section 5(a)(vii)[1] can be cured, so that they are no longer “continuing” for the purposes of Section 2(a)(iii), and that a party relying on such a provision to suspend its obligation to perform can no longer do so; and
- Whether certain events in connection with the administration can be construed as constituting Events of Default and, if so, whether they are “continuing” for the purposes of Section 2(a)(iii).
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