Swap meaning

Pilot express financial remedy (EFR) procedure This flowchart explains the pilot express financial remedy (EFR) route for financial remedy applications where the parties’ combined net assets are below £250,000 (pension rights excluded). It applies from 7 April 2025 upon the commencement of Family Procedure Rules 2010 (FPR 2010), PD 36ZH. It outlines who qualifies for the EFR pathway and the papers that each side must lodge and swap in advance of the first EFR hearing as per PD 36ZH...

This checklist outlines the principal ISDA documentary points that should be considered during a financing transaction. Term sheet stage If acting for a borrower and specialist hedging advisers are engaged, obtain their input on the term sheet. If acting for a borrower, confirm the total pricing of the deal is clear (covering both the loan and the hedge). A borrower may pick a lender for a low loan margin, only to find that the swap credit spread from the same lender renders the overall economics less appealing than those from another lender. Are the loan and hedging set on an IBOR basis (eg EURIBOR) or on a risk free rate (eg SONIA or SOFR)? Does the lender require a zero floor in its loan? If acting for a borrower, ensure the borrower understands the consequences of any mismatch between this and the hedging documentation. ...

The requirement for planning use swaps can emerge when a planning proposal would diminish residential floor space and the local planning authority (LPA) insists that a linked application is lodged to secure a proportionate re-provision of residential space in a different location. This is ordinarily pursued to ensure an equivalent level of residential provision is secured elsewhere through a connected scheme. Frequently, two distinct developers are engaged in a use swap. One applicant seeks consent for works or a change of use that results in the loss of dwellings (Developer A), whilst another brings forward a connected application to deliver residential accommodation in another part of the area (Developer B). A planning use swap agreement records the basis on which the swap proceeds. For further details, see Practice Note: Planning use swaps. Does the planning use swap agreement include the relevant parties? As an agreement under section 106 of the Town and Country Planning Act 1990 (section 106 agreement) is commonly needed before the LPA will...

Manolete Partners Plc v Howarth [2025] EWHC 2294 (Ch) What are the practical implications of this case? This judgment marks a significant victory for company directors and a sharp reminder to office‑holders and those pursuing claims on their behalf: contemporaneous records are paramount. The court condemned the failure to retain and produce meeting notes, emails and working papers, noting that gaps in the paper trail can justify adverse inferences. Insolvency practitioners should, therefore, keep meticulous files of the advice provided and the decisions taken. The court also affirmed that directors are entitled to place reliance on insolvency specialists’ guidance. Where a director behaves openly and follows the directions of a CVA supervisor, later accusations of preference or undervalue are harder to sustain. The evidential onus accordingly returns to the applicant, who must prove misconduct with cogent evidence. Further, the ruling indicates that salary‑for‑loan‑swap arrangements can be valid and commercially rational where structured to minimise PAYE/NIC and where they substitute, rather than add to, salary. Finally, the decision sounds a...

High Court judge Simon Picken concluded that Marme Inversiones 2007 SL’s claim against RBS could not succeed, as the Spanish investment vehicle failed to establish that the bank knowingly made false statements when selling it a number of Euribor-linked swaps in 2008. He further held that Marme would not, in any event, have relied on any such statements to enter the trades, since it was unaware of them at the time. In a 230-page judgment favouring the bank, now operating as NatWest Markets PLC, Judge Picken found that RBS neither engaged in, nor intended or attempted to engage in, manipulation of Euribor. Marme, the Spanish vehicle used by property magnate Glenn Maud to undertake a €1.575bn loan with a syndicate of European lenders led by RBS, had contended at trial that the swaps ought to be unwound due to the bank’s connections to the Euribor manipulation scandal, and sought €996m in damages. However, Judge Picken determined that the alleged representations underpinning Marme’s case were not apparent but instead artificial, and...

Re Sino-Ocean Group Holding Ltd [2025] EWHC 205 (Ch) What are the practical implications of this case? The practical implications of this judgment are: Questions about how a voting class is constituted or composed should, preferably, be aired at the convening hearing, not deferred to the sanction hearing. A dissenting creditor cannot simply contend that liquidation or any other ‘relevant alternative’ advanced by the plan company is not the relevant alternative for Condition A; they must also identify a specific alternative. It is not abusive for a plan company to include a consenting class within a plan, even if this enables a cross‑class cram down, provided the plan has a meaningful effect on that assenting class. When assessing any challenge to whether a special interest creditor’s vote is representative, the court will proceed flexibly rather than apply a rigid “but for” test, and will principally ask whether that creditor voted with the class’s interests in view. Any plan that involves a debt‑for‑equity...

PizzaExpress Financing 2 plc applied for a Part 26A restructuring plan (RP) at a convening hearing in September 2020 and sanction hearing in October 2020. The principal points are outlined below; unless specified otherwise, capitalised expressions bear the meanings set out in the convening judgment. This Deal Debrief sits within our Restructuring plans collection. For an in-depth look at key metrics from the 2023 RPs and commentary from leading figures in the restructuring arena, see Practice Note: Market Insights Trend Report—trends in Part 26A restructuring plans in 2023 [Archived]. Plan company: PizzaExpress Financing 2 plc (the Company) Industry: Restaurants Debtor’s incorporation and jurisdictional aspects: England & Wales, with COMI in the UK Pre-convening development: the Company executed a Contribution Deed one month prior to the convening hearing, which in effect rendered it a primary obligor...

Atento UK Limited and Atento Luxco 1 sought approval for two Part 26A restructuring plans (RPs), with a convening hearing in October 2023 and a sanction hearing in November 2023. The principal takeaways are set out below (capitalised terms not defined here have the meanings given in the convening and sanction judgments). This deal debrief sits within our Restructuring plans collection. For a list of deal debriefs from 2020 to the present, see Practice Note: Part 26A restructuring plan deal debriefs. For a detailed review of key metrics from the RPs submitted in 2023, together with commentary from leading figures in the restructuring community, see Practice Note: Market Insights Trend Report—trends in Part 26A restructuring plans in 2023 [Archived]. Name of plan company Atento UK Limited (Atento UK) and Atento Luxco 1 (the Issuer) (together, the Plan Companies) Industry sector Customer relationship management and business process outsourcing service Place of debtor’s incorporation and jurisdictional factors Atento UK — England Atento Luxco...

ARCHIVED : This Practice Note has been archived and is no longer maintained. STOP PRESS: The Short Selling Regulations 2025 were made and published on 13 January 2025, together with an explanatory memorandum. These regulations replace the assimilated UK Short Selling Regulation and introduce a new legislative framework governing short selling in the UK, defining designated activities and empowering the Financial Conduct Authority (FCA) to set rules for those activities, alongside powers to act in exceptional circumstances. Certain parts commenced on 14 January 2025, with the remainder starting on the date the revocation of the UK Short Selling Regulation takes effect under FSMA 2023. The UK’s new regime removes obligations on investors when entering short positions in sovereign debt or sovereign credit default swaps (CDS) and the linked reporting requirements, while keeping sovereign debt and sovereign CDS within the FCA’s emergency intervention powers on short selling...

Dated: Parties [ insert party name ], whose registered office is situated at [ insert address ] ('the First Party'); and [ insert party name ], whose registered office is situated at [ insert address ] ('the Second Party'); and Recitals The First Party proposes to lodge with the Council a planning application relating to the Commercial Proposal for the First Property. The Second Party proposes to lodge with the Council a planning application relating to the Residential Proposal for the Second Property. The parties acknowledge that the Second Party shall file the Second Planning Application with the Council at the same time as the First Party files the First Planning Application with the Council, each being related planning applications for a Planning Use Exchange concerning the First Property and the Second Property, on the terms set out below. ...