This update relates to the directions hearing that was listed to take place between 3-5 November 2020
Update relating to the directions hearing listed to take place between 3-5 November 2020
This update relates to the directions hearing that was listed to take place between 3-5 November 2020 in order to determine if there were any issues which were potentially dispositive of Deutsche Banks’s €127m Indemnity Claim against the Estate.
As creditors will be aware, in 2018, the German Tax Authority (“GTA”) and Deutsche Bank AG (“Deutsche Bank”), respectively, submitted applications for a stay of their appeals against the rejection of their proofs of debt pending the resolution of the GTA’s claim in Germany (the “Stay Applications”). A two-day hearing in respect of questions as to the appropriate jurisdiction for the resolution of certain matters relevant to the GTA and Deutsche Bank’s Appeals took place in January 2019. Judgment was handed down in March 2019, which was followed by an Order dated 25 July 2019 and a Ruling dated 31 July 2019. Consequent upon that Judgment:
GTA: the Stay Application filed by the GTA was allowed so that, in effect, the dispute is to be referred to the German Courts. The Court ordered that the Estate pay the GTA’s costs of the Application and, pursuant to costs agreement between the parties, this was effected in early August 2019. Pursuant to the Order dated 25 July 2019, Weil Germany submitted the JSA’s grounds of objection on 25 October 2019.
Deutsche Bank: The Stay Application filed by Deutsche Bank was not allowed so that, in effect, the Judge decided that the Deutsche Bank Mirror Claim and Deutsche Bank Indemnity Claim could be determined by the English Court, without first having to await the outcome of the proceedings in Germany. In a further ruling handed down on 31 July 2019, the court confirmed that Deutsche Bank shall pay the JSA’s costs of the Stay Application (to be assessed).
Deutsche Bank Mirror Claim - a hearing in respect of the Mirror Claim issue was due to take place in May 2020, however pursuant to the terms of a confidential settlement between the Estate and Deutsche Bank, this hearing was vacated and Deutsche Bank withdrew its EUR 48m proof in the administration.
Deutsche Bank Indemnity Claim - the directions hearing seeking to determine if there are issues which are potentially dispositive of Deutsche Bank’s EUR 127m Indemnity Claim was fixed to float for a ½ day between 3 – 5 November 2020.
On 30 October, the JSAs agreed a confidential settlement with Deutsche Bank in relation to the €127m Claim, meaning that the 3-5 November directions hearing was vacated by the Court.
Whilst the terms of the settlement are confidential, the effect is that:
Please note that creditors of MFGUK may request copies of certain documents comprising the Joint Special Administrators’ as well as the GTA’s and Deutsche Bank’s evidence from the Court. If you have questions or concerns about these applications, please contact the Joint Special Administrators at firstname.lastname@example.org