On 31 March 2015, Sir William Blackburne gave judgment in Myers v Kestrel & ors  EWHC 916 (Ch). He considered the issue of whether minority loan note holders could object to amendments to their rights by the majority, by which the loan notes were subordinated to more than £100m of further loans and their redemption date was postponed by eight years. He concluded that there was no contractual or equitable basis for the claimants’ objections, including no implied terms that the majority would act in good faith. The judge also considered the meaning of “modification” in a contract, and allegations of insolvency which was alleged to have triggered repayment.
Patricia Edwards appeared as counsel for the defendants (instructed by Macfarlanes LLP)