The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Arranger liability: Behave yourself

Banks' disclaimers on debt deals will be ineffective if their behaviour doesn't match up. An analysis from the legal perspective.

(This article appears courtesy of International Financial Law Review, sign up for a free trial on their site

(Go directly to IFLR'S commentary)


The High Court of England and Wales recently handed down its decision in IFE Fund SA v Goldman Sachs International, which examined the conduct of Goldman Sachs International as the arranger and underwriter of the issue of bonds in the European mezzanine debt market.

In particular, the IFE case ruled on Goldman Sachs' liability arising from its dissemination of an information memorandum, including certain accounting reports, to a participant in conjunction with the syndication of mezzanine bonds, and Goldman Sachs' ability to limit its liability by relying on customary disclaimers of responsibility incorporated within the information memorandum.

The IFE case is significant for two reasons. First, it is rare that the conduct of an arranger in its customary role of marketing a debt package is litigated to judgment. Secondly, the IFE case purposefully examines and provides insight as to the Court's assessment of the customary role and associated liability of an arranger that disseminates information memoranda to participants as part of the syndication process.

Background

Autodis, a French company, mandated Goldman Sachs to underwrite a €275 million mezzanine facility to partially fund its acquisition of Finelist Group, an English public company.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree