Vol 15 (2018) - Issue 3

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The Vultures are Circling: The High Court Defines 'Financial Institution' Widely

Introduction and synopsis
In the recent judgment handed down by HHJ Pelling QC, Grant and Others v WDW 3 Investments Ltd and another [2017] EWHC 2807 (Ch), the High Court considered whether a financial instrument had been validly assigned. The court held that where the parties had not agreed a definition of 'financial institution' in a commercial loan agreement, such term would be construed broadly. The court concluded that a special purpose entity set up to extract value from distressed debt, commonly known as a 'vulture fund', fell within this wide construction.