The Irish Court of Appeal has recently confirmed that the sale of a bare right of action to litigate in the Irish courts is invalid under Irish law (SPV Optimal SUS v HSBC Institutional Trust Services (Ireland) (2017)). This may be unwelcome news for particular sectors of the distressed debt market. However, the decision will be welcomed by depositaries, managers and other fund service providers. Further, it is clear that the decision has no impact on the regular market for the transfer of loan portfolios and other debt (for example, as part of collaterised loan obligation deals).
April 24, 2017