Simon Arnold of Forum Chambers, instructed by Gherson Solicitors LLP, acted for a designated individual within the meaning of the Russia (Sanctions) (EU Exit) Regulations 2019 S.I. 2019/855 defending proceedings brought by a bridging facility provider. The credit provider alleged that because the individual was very recently ‘designated’ then this (a) rendered the credit agreement unlawful; (b) meant that it could not without a license from the Office for Financial Sanctions Implementation ‘deal’ with the retained interest deducted from the capital sum advanced; and (c) the designation status of the borrower amounted to a material adverse change within the meaning of the terms of the credit facility which entitled it (among other grounds) to accelerate the payment obligations and demand possession of the property if the accelerated payment was not made.
At a recent High Court hearing, in what is understood to be one of the very few cases on this issue, the court agreed that complex issues were engaged, and the matter was suitable for trial before a High Court Judge, which is anticipated to occur towards the end of the year.
