Re Olympia Securities Commercial plc (in administration); Grant and others as Joint Administrators of Olympia Securities Commercial Plc (in administration)) v WDW 3 Investments Ltd and another

Bank – Construction of facility agreement. The administrators of a company (Olympia) applied for directions concerning whether the first respondent company (WDW) was a secured creditor of Olympia for a sum allegedly due, following the early termination of interest rate swap agreements, originally entered into by Olympia and Irish Bank Resolution Corporation Ltd (IBRC), and following various assignments. IBRC had lent Olympia in excess of £50m under a facility agreement. Among other things, the Chancery Division held that, as a matter of construction, WDW was a 'financial institution' for the purposes of the facility agreement. It further ruled that IBRC had been entitled to serve notice of early termination under the International Swap Dealers Association master agreement as and when it had, and that the company was liable to pay the early termination payment, notwithstanding that IBRC had committed a bankruptcy event of default prior to the service of that notice.

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