Bankers Trust Company and Bankers Trust International plc v PT Jakarta International Hotels & Development
| Date | 01 March 1999 |
| Published date | 01 March 1999 |
| Pages | 271-273 |
| DOI | https://doi.org/10.1108/eb025015 |
| Author | Joanna Gray |
| Subject Matter | Accounting & finance |
Journal of Financial Regulation and Compliance Volume 7 Number 3
Regulatory and legal commentary
Litigation fall-out from South East Asian
financial turmoil: High Court enforces
arbitration clause in ISDA master agreement
Bankers Trust Company and Bankers Trust
International plc v PT Jakarta International
Hotels & Development
High Court, Queens Bench Division: Cresswell J
Date of Judgment: 12th March, 1999
Joanna Gray
Reader in Financial Regulation, University of Newcastle upon Tyne, Newcastle Law School,
21-24 Windsor Terrace, Jesmond, Newcastle upon Tyne NE1 7RU; tel: 0191 222 7685;
fax: 0191 212 0064 or tel:/fax: 01669 650 349; e-mail: joanna.gray@newcastle.ac.uk
FACTS
During the course of 1997 Bankers Trust
International plc (BTI) and the defendant
company, PT Jakarta International Hotels
& Development (JIHD), entered into a
series of seven Indonesian rupiah/US dollar
cross-currency swap transactions. The
seven transactions were made under the
auspices of an International Swaps and
Derivatives Association (ISDA) master
agreement dated 9th March 1995. That
ISDA master agreement was expressed to
be governed by English law and contained
an arbitration clause which provided (inter
alia):
'Any dispute, controversy or claim
however arising out of or in connection
with this Agreement or the breach
hereof,
including any questions
regarding its existence, validity or termi-
nation, shall be referred to and finally
resolved by arbitration under the Rules
of the London Court of International
Arbitration, which rules arc deemed to
be incorporated by reference into this
clause'.
BTI and JIHD were due to make their first
payments to each other under the swap
transactions on 16th January, 1998 but
JIHD wrote to Bankers Trust Company
(BTCo) in Singapore explaining that their
financial position was such that they would
be unable to pay the US dollar debt due
from them and requested BTCo not to
remit their Indonesian rupiah obligations
due.
On 27th January, 1999 JIHD com-
Journal of Financial Regulation
and Compliance, Vol. 7, No. 3,
1999,
pp. 271-273
© Henry Stewart Publications,
1353-1988
Page 271
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