Marshalling meaning

In this issue: Lending Security Debt capital markets Derivatives Cryptoassets Daily and weekly news alerts New and updated content Useful information Lending Nova Leipzig Sarl v Gravity Fitness Ltd [2025] EWHC 1262 (Comm) An application to the Commercial Court sought a stay on the basis of forum non conveniens. The court held that Gravity Fitness Limited, an English company, had not satisfied its burden on the ‘More Appropriate Forum’ question. The defendant’s reliance on the potential application of German law was insufficient to establish that Germany was a more suitable forum than England, whether viewed from the parties’ interests or the broader interests of justice. Security Brooke Homes (Bicester) Ltd v Portfolio Property Partners Ltd (in administration) [2025] EWHC 1305 (Ch) This dispute examines equitable rights and duties between secured creditors after development land was sold by the first-ranking mortgagee, Desiman. The second-ranking creditor, Brooke Homes, sought an equitable account and pressed...

Banking & Finance—May 2025 case round-up Nationwide Building Society v The Bank of New York Mellon, London Branch and another company [2025] EWHC 1046 (Comm) Debt capital markets—notes not admitted to listing Nationwide issued proceedings against its solicitors, A&O Shearman (A&O), claiming an approximate £83m tax detriment flowing from the omission to list notes, as pleaded by Nationwide. A&O, in response, pursued a contribution from BNY Mellon (BNY), contending that BNY contributed to the non-listing. The central point was whether a signing and closing agenda (normally a process checklist) could impose a binding duty on BNY to confirm that the notes were listed. The Commercial Court refused BNY’s application for summary judgment, concluding that A&O’s case had a realistic prospect of success at this stage. It determined that whether the transaction suite, including the agenda, created enforceable commitments required a fuller factual inquiry at trial. Skykomish Ltd v Gerald Eve LLP [2025] EWHC 1031 (Ch) Mezzanine financing and profit share—property development—purpose-built student accommodation—valuation of property—professional...

In this issue: Service charges Contractual issues Rent and rates Easements and covenants Property insolvency Trespass and adverse possession Additional Property Disputes updates LexTalk®Property Disputes: a Lexis®Nexis community Daily and weekly news alerts New and updated content Dates for your diary Service charges Landlord not entitled to recover insurance rent tied to commission rebates (London Trocadero (2015) LLP v Picturehouse Cinemas Ltd) In London Trocadero (2015) LLP v Picturehouse Cinemas Ltd [2025] EWHC 1247 (Ch), the High Court considered disputes over insurance rent payable under two leases. The judge concluded the landlord could not charge insurance rent to reflect commission rebates (the ‘Landlord’s Commission’) it had obtained from its insurers. By contrast, the landlord was entitled to recover insurance rent in respect of sizeable policy excesses introduced because of fire safety concerns at the premises. The tenant succeeded on a restitutionary claim to recoup the overpaid Landlord’s Commission, but its challenges concerning...

What is marshalling? In Re Bank of Credit and Commerce International SA (No 8) (at [231]–[232]), Lord Hoffman characterised marshalling as an equitable device for resolving competing claims between two or more creditors of the same debtor. Where one creditor can resort to more than one security or fund, and another has access to only a single security, the latter gains an equity to insist that the former looks, as far as practicable, to the security or fund that is not available to the latter, or is treated as having done so... By way of illustration, suppose C1 and C2 are each owed £1m by a common debtor, D. To secure C1’s £1m, D grants C1 charges over two assets—Blackacre and Whiteacre—each worth £1m. C2’s protection, however, is limited to a charge over Whiteacre alone. If C1 satisfies its claim out of Blackacre, C2 can then take the benefit of its charge over Whiteacre...

This glossary sets out numerous expressions frequently encountered in the restructuring arena. Words appearing in the definitions in bold are explained in other entries in this glossary. For further banking terminology, see the principal Banking & Finance Glossary. Restructuring glossary—A Acceleration: Acceleration means the agent, acting on directions from the majority lenders after an event of default, takes formal action, for example calling for early repayment of the facility. Ad-hoc committee: A temporary creditors’ group (often contrasted with a formal committee) that lacks any entitlement to official recognition. Administration: A process under the IA 1986 in which a financially distressed company is operated by an administrator as a going concern before longer-term outcomes, such as break-up and sale, are pursued. Administrator: An Insolvency Practitioner named by the court, a Qualifying floating charge holder, the directors or the company, to take control and fulfil one of the purposes in IA 1986, Sch B1. Administrative receivership: Arises when a company breaches the terms of...

Meaning of solvent Rules governing payment of a deceased person’s debts, together with funeral and testamentary expenses, depend on whether the estate is solvent or insolvent. An estate is treated as solvent when its assets are enough to meet, in full, funeral, testamentary and administration expenses, plus all debts and liabilities. Whether legacies can be settled in full is immaterial when determining solvency. Where there is uncertainty about solvency, the personal representatives (PRs) should consider applying the statutory hierarchy for insolvent estates in Schedule 6 to the Insolvency Act 1986, which prescribes the priority for paying the deceased’s debts and funeral and testamentary expenses. For guidance on that statutory order, see Practice Note: Payment of debts-insolvent estate. In a solvent estate, the rules for allocating debts and liabilities are contained in section 34 of the Administration of Estates Act 1925 (AEA 1925). AEA 1925, Sch 1 Pt II sets out the order for PRs...