Assignment of Debt in UK Law

Leading Cases
  • CFL Finance Ltd v David Rubin and Others
    • Chancery Division
    • 27 Enero 2017

    "Assigned Assets" was defined to mean all of Kaupthing's rights and benefits under or in respect of the Facility Agreement and the Guarantees, save that Kaupthing's security rights were expressly excluded. (Clause 3 of the KSA itself made provision in respect of the enforcement of Kaupthing's security.) "Obligations" was defined to mean all of Kaupthing's obligations "(if any)" under or in respect of the Assigned Assets.

    As at the date of the creditors' meeting, Kaupthing was not entitled to sue upon or enforce a debt owed by Crosslet Vale under the Facility Agreement or a debt owed by Mr Gertner under his guarantee. Its former entitlement in that regard had been replaced by an entitlement to enforce the terms of the KSA. For reasons already set out, neither clause 2.1 nor clauses 6.2 and 7 of the KSA assist Mr Gertner.

    Alternatively, even if (contrary to my view) the claims could be said to have some kind of continuing existence, Kaupthing's inability to enforce those claims meant that it could not be considered a creditor in respect of them. The position would be analogous in that regard to the case of a statute-barred debt (as to which, see Ridgeway Motors (Isleworth) Ltd v ALTS Ltd [2005] EWCA Civ 92, [2005] 1 WLR 2871, at [35], and Mittal v RP Capital Explorer Master Fund [2014] BPIR 1537 at [58]).

    However, in agreement with Mr Atherton QC I consider that such a course is neither necessary nor appropriate. Without Kaupthing's support, the Proposal would not have been approved. A further creditors' meeting would necessarily result in the rejection of the Proposal, unless Laser Trust were able to vote in favour of it on the basis of the KSA.

  • Moises Gertner v CFL Finance Ltd
    • Court of Appeal (Civil Division)
    • 30 Julio 2018

    But it is in my judgment obvious, as I have already said, that, looked at objectively, the additional consideration was intended to act and must be presumed to have acted as an inducement to Kaupthing to support an arrangement which would avoid Mr Gertner's bankruptcy.

    It was a standard published requirement which protected a defined class of creditors and applied to all clubs in the event of insolvency. It was not an ad hoc private arrangement designed to give the largest and most influential creditor an additional financial advantage not made available to any other creditor in the IVA.

  • Donegal International Ltd v Zambia
    • Queen's Bench Division (Commercial Court)
    • 15 Febrero 2007

    Donegal's argument seems to be that the ostensible authority of Mr Kasonde derives from his usual authority as Minister of Finance, but this does not seem to me to answer an objection that his usual authority was restricted by the Constitution. This is not a case like Robertson v Minister of Pensions, [1949] 1 KB 227, which Donegal cite in their submissions, where Denning J could say at (p232) of a subject's dealings with a government department,

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Legislation
  • The Insolvency (England and Wales) Rules 2016
    • UK Non-devolved
    • 1 de Enero de 2016
    ... ... arrangement in relation to a company under Part 1 of the Act;“debt” is defined in rule 14.1(3) for the purposes of administration and ... resolution procedure, and(iv) payments made as a result of an assignment or a settlement of any such action, arbitration or other dispute ... ...
  • Mercantile Law Amendment Act 1856
    • UK Non-devolved
    • 1 de Enero de 1856
    ... ... be made by any Person after the passing of this Act to answer for the Debt, Default, or Miscarriage of another Person, being in Writing, and signed ... A Surety who discharges the Liability to be entitled to Assignment of all Securities held by the Creditor.V A Surety who discharges the ... ...
  • Administration of Justice Act 1705
    • UK Non-devolved
    • 1 de Enero de 1705
    ... ... Action of Debt brought on single Bill or Judgment, after Money paid, such Payment may be ...   Witnesses , which may be done without any Stamp; provided the Assignment so endorsed be duly stampt before any Action be brought thereupon; and if ... ...
  • Bankrupt and Insolvent Act 1857
    • UK Non-devolved
    • 1 de Enero de 1857
    ... ... this Act upon any Trading, Act of Bankruptcy, Petitioning Creditor's Debt, Commission, or other Proceeding in Bankruptcy before the Commencement of ... XCIII. If any such Trader shall execute any Conveyance or Assignment by Deed of all his Estate and Effects to a Trustee or Trustees for the ... ...
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Books & Journal Articles
  • Islamic financial institutions: conduits for money laundering?
    • No. 23-2, May 2020
    • Journal of Money Laundering Control
    • 285-295
    Purpose: The purpose of this paper is to discuss various situations in the Islamic financial services industry that are asserted to facilitate money laundering and the counter-arguments to the asse...
    ... ... Further, it is said that hawalah, namely,acontract of transfer of debt, which is permissible under the Islamic commercial law[12],facilitates ... In essence, hawalah is a transfer or assignment of debt from an assignor to an assignee,which results in the debt of the ... ...
  • Workout management of non‐performing loans. A formal model based on transaction cost economics
    • No. 26-1, February 2008
    • Journal of Property Investment & Finance
    • 59-79
    Purpose: The German banking sector has recently been facing high real estate loan default rates resulting in the accumulation of a high volume of distressed real estate debt in the banks' balance s...
    ... ... in the accumulation of a high volume of distressed real estate debt in the banks’ balancesheets. As a consequence, German banks are ... The implication of banking secrecy and assignment of debt innon-performing loan transactions is also addressed by Cahn ... ...
  • Debt Management
    • Part II. Actions and Responses
    • Stop Vulture Fund Lawsuits
    • Poornimah Devi Sookun
    • 63-71
    ... ... • Study those loan agreements and check assignment clauses, law that is applicable to the contract, sovereignty issues, pari passu clauses, and other terms and conditions of the contract as identified ... ...
  • REMEDIES OF BUILDING SUB‐CONTRACTORS AGAINST EMPLOYERS
    • No. 46-4, July 1983
    • The Modern Law Review
    ... ... a collateral undertaking guaranteeing the contractor’s debt, but to a direct undertaking to pay the supplier direct. In ... Such a debt may be the subject of a legal assignment, indicating that there must be a debt presently in existence.62 ... ...
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Law Firm Commentaries
  • Blockchain In International Trade Execution
    • Mondaq UK
    ... ... While the statutory provisions governing the legal sale and assignment of debt are still governed in principle by legislation dating back to 1925 ... ...
  • Landmark Privy Council Ruling Establishes Scope And Ranking Of Ex-trustees' Interest In An Insolvent Trust
    • Mondaq UK
    ... ... The Jersey Respondent argued that its debt was first in time and ... consequently took priority over the claims of ... Guernsey Trust took an assignment of the (now) judgment debts due ... to the two BVI companies and submitted ... ...
  • FAQs on assignments in finance transactions
    • JD Supra United Kingdom
    This note aims to provide brief and practical answers to common questions on the law of assignment in English law finance transactions. Please see full Publication below for more information.
    ... ... , not ice to the debtor is not enough by itself to make an assignment a legal assignment. The full requirements for a legal assignment are ... notice to the debt or is capable of establishing the priority of the assignment over later ... ...
  • Direction To Pay Amounted To An Equitable Assignment
    • Mondaq United Kingdom
    ... ... Harrison's company (MPH) was inserted, along with bank details. In due course Mr & Mrs Burridge obtained a third party debt order against MPH. The issue for decision in the Court of Appeal was whether the payment from West Ham at the time of the debt order was due to ... ...
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Forms
  • Statutory Demand under Section 268(1)(a) of the Insolvency Act 1986. Debt for Liquidated Sum Payable Immediately
    • HM Courts & Tribunals Service court and tribunal forms
    Forms relating to bankruptcy and insolvency, including the application for a certificate to show your bankruptcy has ended.
    ... ... Notes for Creditor ...    If the Creditor is entitled to the debt by way of assignment, details of the original creditor and any intermediary assignees should be given in part B on page 3 ...    If the amount of debt ... ...
  • Demand immediate payment of a debt ('statutory demand')
    • HM Courts & Tribunals Service court and tribunal forms
    Forms relating to bankruptcy and insolvency, including the application for a certificate to show your bankruptcy has ended.
    ... ... Notes for Creditor ...    If the Creditor is entitled to the debt by way of assignment, details of the original creditor and any intermediary assignees should be given in part B on page 3 ...    If the amount of debt ... ...
  • Demand immediate payment of a debt from a limited company ('statutory demand')
    • HM Courts & Tribunals Service court and tribunal forms
    Forms relating to bankruptcy and insolvency, including the application for a certificate to show your bankruptcy has ended.
    ... ... (d) if the creditor is entitled to the debt by way of assignment, a statement to that effect and that the details of the relevant assignment(s) are given in Part B below (which must then also be filled in); ... ... ...
  • Statutory demand under Section 268(1)(a) of the Insolvency Act 1986. Debt payable at future date
    • HM Courts & Tribunals Service court and tribunal forms
    Forms relating to bankruptcy and insolvency, including the application for a certificate to show your bankruptcy has ended.
    ... ... Notes for Creditor ...    If the Creditor is entitled to the debt by way of assignment, details of the original creditor and any intermediary assignees should be given in part B on page 3 ...    If the amount of debt ... ...
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