Update on Supreme Court Proceedings: UKSC 2018/0192 and UKSC 2018/0191
15 Mar 2023
- The Law Debenture Trust Corporation p.l.c. was appointed by Ukraine (our client) in 2013 as Note Trustee in respect of its USD 3 billion 5% Notes. The duties imposed on us by the trust deed and the law are strict and onerous and reflect the fiduciary nature of our role as Note Trustee.
- The principal amount of the Notes and the last instalment of interest, fell due for payment on 21 December 2015, but Ukraine did not make payment.
- In accordance with our legal obligations and the trust deed, at the direction of the noteholder, we commenced these proceedings in 2016 to enforce payment of the Notes and applied for summary judgment on the claim. The Russian Federation is the sole noteholder, but is not party to the trust deed or the court proceedings.
- The High Court granted summary judgment on the claim in favour of the Note Trustee in 2017. Ukraine appealed to the Court of Appeal and both parties then appealed to the Supreme Court on the issue of whether summary judgment should be entered on the claim or whether Ukraine should be permitted to defend the claim at trial.
- Following hearings in December 2019 and November 2021, on 15 March 2023, the Supreme Court ruled that none of Ukraine’s defences to the claim is arguable except a limited part of its defence of duress, which Ukraine is now required to amend. The full judgment and a press summary are available on the Supreme Court’s website: Decided cases - The Supreme Court
As required by English law, we take our fiduciary obligations seriously and all action taken to date has been in the proper discharge of those duties.
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