Developments in English Law: Chancery Division of High Court Overturns Exit Consent
The recent judgment of the Chancery Division of the English High Court in Assénagon Asset Management S.A. v. Irish Bank Resolution Corporation Limited (formerly Anglo Irish Bank Corporation Limited), issued on July 27, 2012, struck down an exit consent in a transaction governed by English law. The Anglo Irish judgment is the first time that the legality of exit consents has been tested under English law. While the judgment is subject to appeal, it calls into question the continued efficacy of established restructuring techniques that have used exit consents as a core mechanic and introduces significant uncertainty into the English law governed bond market.