Knighthead Master Fund Lp and others v The Bank of New York Mellon and another

Bank – Securities. The proceedings concerned bonds that had been issued by the Republic of Argentina. The bonds had been issued but, following default by the Republic, had been replaced by new bonds if the bond holders had wished. The claimant bondholders had not accepted the transfer and had retained their original bonds. Proceedings had taken place in New York concerning the rank of the various bonds and payments made by the Republic to the first defendant bank in respect of the new bonds. The claimants, who included holders of the original bonds, had applied to the High Court for declarations and injunctive relief regarding a payment made by the Republic to the bank in respect of the new bonds. The Chancery Division adjourned the application for declarations to allow the new bondholders an opportunity to intervene and refused, in the circumstances, to grant injunctive relief where the New York court had already ordered that the bank was to retain the money.

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