Exit Consents Unlawful Under English Law
Last week, the English High Court ruled that an “exit consent” used by Anglo Irish Bank to impose losses on subordinated bondholders was invalid under English law and violated the terms of the applicable trust deed. It is the first time that the legality of exit consents has been tested by an English court. Mr Justice Briggs considered the Delaware case of Katz v Oak Industries Inc, in which the use of an exit consent was upheld, but declined to follow that case.
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