Professional Documents
Culture Documents
Pari Passu Principle Case
Pari Passu Principle Case
.. PERAYU
DAN
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
B-02(IM)(NCC))-3695-2010
14.
15.
.. RESPONDEN-RESPONDEN
Antara
1.
2.
.. Pemohon-Pemohon
Dan
1.
2.
B-02(IM)(NCC))-3695-2010
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
CORAM:
B-02(IM)(NCC))-3695-2010
2.
3.
4.
The Appellant (MTB) was the trustee for the holders of medium
terms notes (MTN) issued by TAS in 2003. As a trustee, the
Appellant at all material times was an unsecured creditor of
TAS. The individual notes holders were not creditors of TAS.
4
B-02(IM)(NCC))-3695-2010
5.
6.
B-02(IM)(NCC))-3695-2010
7.
8.
9.
B-02(IM)(NCC))-3695-2010
10.
11.
B-02(IM)(NCC))-3695-2010
12.
13.
The Appellant argued that the lenders for the syndicated term
loan and the holders of the convertible bonds through
8
B-02(IM)(NCC))-3695-2010
14.
15.
B-02(IM)(NCC))-3695-2010
16.
10
B-02(IM)(NCC))-3695-2010
18.
a)
b)
c)
B-02(IM)(NCC))-3695-2010
19.
B-02(IM)(NCC))-3695-2010
20.
STL-SPV and CB-SPV were not parties to the MTN Trust Deed (2003)
and neither were they required to consent to any subordination
arrangement in favour of the MTN lenders when the facilities through the
STL-SPV and the CB-SPV were extended to TAS in 2005. This has
been discussed above. Contractually therefore, the STP-SPV or for the
matter the CB-SPV were not bound at all to the legal effects of clause
10.1(cc). From the perspective of time, it should be highlighted that STPSPV and CB-SPV were only incorporated in 2005, that is, subsequent to
13
B-02(IM)(NCC))-3695-2010
the MTN Trust Deed entered into in 2003 wherein clause 10.1 (cc) was
found.
21.
22.
B-02(IM)(NCC))-3695-2010
winding up.
(See:
McPhersons
Law
of
Company
23.
15
B-02(IM)(NCC))-3695-2010
24.
It reflects the
25.
B-02(IM)(NCC))-3695-2010
(See:
26.
B-02(IM)(NCC))-3695-2010
27.
B-02(IM)(NCC))-3695-2010
apply to TAS debts and all its unsecured creditors, unless the
lenders to the syndicated term loan and the convertible bond
holders specifically contracted away their right to rank pari
passu or are estopped from claiming a pari passu ranking.
28.
or equally between
themselves, and
29.
19
B-02(IM)(NCC))-3695-2010
30.
31.
B-02(IM)(NCC))-3695-2010
This by itself
32.
33.
In any event, the court is of the view that, clause 10.1 (cc) of
the MTN Trust Deed was not a subordination clause as
contended by the Appellant.
judges finding that clause 10.1 (cc) did not fall into any one of
the three basic categories of recognized subordination
agreement
as
categorised
by
Lloyd
in
Re
SSSL
a)
B-02(IM)(NCC))-3695-2010
c)
34.
The Facility
22
B-02(IM)(NCC))-3695-2010
35.
It is also obvious that clause 10.1 (cc) only spelt out TASs
obligation to ensure that inter-company loans or advances
were subordinated to TASs liabilities under the MTN
programme.
36.
23
B-02(IM)(NCC))-3695-2010
Conclusion
37.
1.
2.
3.
B-02(IM)(NCC))-3695-2010
4.
2.
3.
4.
5.
6.
7.
8.
25
B-02(IM)(NCC))-3695-2010
Other References
26