Citibank, N.A., London Branch v Oceanwood Opportunities Master Fund and others

Bank – Conflict of laws. The Norske Skog group had entered into financing arrangements with certain creditors which were governed by three loan documents, including an indenture and an inter-creditor agreement (ICA). The group defaulted under the funding arrangements and the claimant (Citibank), as security trustee and security agent under the loan arrangements, applied for directions as to whether it should seek and/or act in accordance with the directions of a body of creditors (of which the first defendant, Oceanwood, was a majority holder of debt and whose vote would, therefore, govern), or whether the provisions of the loan documentation meant that Oceanwood's voice could not be heard. The second and third defendants challenged the jurisdiction of the English court, contending that the indenture afforded exclusive jurisdiction to the New York courts. The Financial List construed the indenture and the ICA and ruled that the challenge to its jurisdiction failed.

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