Articles by author
Dealing with “group think”: when the wrong group entity assigns receivables to lenders
It is all too common for corporate groups to think and act as integrated businesses, managed by the same individuals and with group receivables set out in consolidated group accounts. Such “group think” may reap efficiencies but presents challenges when the wrong group entity assigns a receivable due to another group entity in order to provide security for finance lent to support the business of the group. The recent decision in Abraaj Investment Management Ltd (in liq) v KES Power Ltd [2026] EWHC 65 (Comm) offers insight into the issues that arise in such a situation and the potential arguments available to lenders seeking to assert the effectiveness of their security.
4 MAY 2026Identifying the place of performance in English law transactions involving foreign banks
The rule in Ralli Bros will excuse non-performance of an English law obligation where performance necessarily involves an act prohibited by the law of the place of performance. However, the courts have not given clear guidance on identifying the place of performance where a foreign bank plays an ancillary role in the performance of such an obligation. While there is good reason to consider that payment of liabilities in a foreign currency, or to a foreign account, necessarily involves performance in a foreign country, each contract or instrument must be carefully examined to determine what precise acts fall to be performed, and where.
6 FEB 2025
