Facility agent chasing (payment) waterfall

Table of contents

• Original news
• What were the facts in the case?
• The parties to the facility agreement
• The Hedging Agreements
• The basis of the dispute
• How was the payment waterfall in the facility agreement drafted?
• What was BLB's case?
• What was Landesbank's case?
• What was the decision in the case?
• What are the lessons from this case?

Article summary

Banking & Finance analysis: The High Court decision in Landesbank Hessen-Thüringen Girozentrale v Bayerische Landesbank London Branch—a dispute arising out of the payment waterfall in a facility agreement—is a good reminder of the need to pay attention to the drafting of agreements in which one party plays multiple roles and of the need to think carefully about where each creditor is intended to rank in the payment waterfall.