UBS AG, London Branch v Glas Trust Corporation Ltd and another

Bank – Securitisation. The Financial List ruled on a claim, concerning a securitisation transaction. The claim was brought by UBS AG, London branch, for declaratory relief against GLAS Trust Corporation Ltd, which was the note trustee in the securitisation, and Fairhold Securitisation Ltd, which was the issuer of the notes. The dispute arose after an extraordinary resolution of noteholders authorised and directed the note trustee to meet certain legal and financial expenses of an ad hoc group of noteholders (the AHG expenses). Under the relevant agreement, the expenses of the note trustee fell to be paid in priority to UBS. UBS had argued that the AHG expenses did not constitute expenses that might be incurred by the note trusete under the relevant transaction documents. The court held that UBS had made good its objections to the extraordinary resolution, and that, as conceded by the note trustee, the adoption of the AHG expenses could not proceed as it had originally proposed.

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