New York Court of Appeals Endorses LSTA Position

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December 21, 2016

In a unanimous decision in Stonehill v. Bank of the West, the New York Court of Appeals issued an important decision affirming that an agreement to trade syndicated bank debt is binding, even where the trade remains subject to execution of a final, written contract. The Court reversed a decision of the First Department that had – contrary to long-standing market practice – permitted a seller to back out of a trade because the value of the loan had moved in its favor.

RK&O represented the LSTA in this matter in both helping to persuade the Court to accept the appeal and in securing this significant victory.

In this client alert, RK&O attorneys David Daniels, Jennifer Grady and Jon Kibbe examine the ruling and its future implications.

Click here to read the RK&O memo about this decision.

Click here to read the full New York Court of Appeals decision.