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Re Lehman Brothers International: Difference between revisions
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Re Lehman Brothers International (view source)
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A case on the practical limitations of spraying the expression "[[fixed charge]]", or even [[floating charge]], for that matter — over all your documents. | A case on the practical limitations of spraying the expression "[[fixed charge]]", or even [[floating charge]], for that matter — over all your documents. | ||
If you de-pomposify the language of the introduction <ref>the expurgated words being: “appearing in both the documents most, but by no means all, of which I am invited to decide, in each case, purport to thereby created attendant in fact, as the parties would have known when the documents were created, of LBF to which the security related,from time to time intangibles, mainly in addition to purporting to create security for payment of debts owed by LBF to LBIE, constitute security in respect of (if arguably imprecisely) within the Lehman Brothers group , at least in express terms, but relationship between LBIE and its affiliates be obliged to as between LBIE and its affiliates”</ref> the issue is this: | |||
:'Two unusual features lie at the heart of the issues. | |||
:''The first is that the documents describe the security as a “general lien” with rights of retention, sale and the application of proceeds, whereas the vast bulk of the property held by LBIE, consisted of de-materialised securities and money. | |||
:''The second is that, the same provisions purported also to secure debts owed by LBF to a broadly defined class of LBIE’s affiliates without creating any agency or trust regulating the circumstances in which LBIE might realise the security for the benefit of its affiliates, or the priority in the application of any proceeds of such realisation. | |||
:''This application has come to be known as the [[Extended liens|Extended Liens]] application.'' | |||
{{seealso}} | {{seealso}} | ||