Borrower protection

… heavily involved in highly publicised challenges to derivatives interest rates …

Chambers UK
Commercial Dispute Resolution

The borrower protection group at Penningtons Manches Cooper is market leading and currently advising on over £800 million of interest rate hedging products. The team has prevented banks from enforcing their security. Rich Eldridge appeared on Panorama and other team members have been quoted in the press including The Telegraph, The Times and The Independent.

With expertise in finance law as well as litigation, the team understands the economics of hedging products, deploys litigation skills and creates solutions to provide forward looking financial stability.

If you have a hedging product and are within the FCA redress scheme, we can prepare your submission for the review. Our objectives are to increase the chance of obtaining compensation and move your case closer to the top of the huge pile of products to be reviewed. If you are not in the redress scheme, the team can provide guidance on whether to pursue a court claim.

Our lawyers can advise where a hedging product has severe consequences. We can assist in situations where a bank adds the mark to market value of an interest rate swap to a loan in order to allege a breach of a loan to value covenant and justify an increase in the interest rate. The team can also advise on situations where an interest rate swap has drained a business of cash causing the business to be pressurised into selling assets when market prices are low.

In cases involving hedging products, banks will often change their stance when they realise a sophisticated law firm is standing up for the business. If you prefer a low key approach, we can help you behind the scenes by advising on how to negotiate with the bank.

We offer expert advice on:

  • interest rate hedging products
  • the FCA redress scheme
  • taking banks to court
  • negotiating solutions

Recent work highlights

Battle to expand the FCA redress scheme

Running a high profile campaign to allow medium sized businesses to be included in the FCA redress scheme. Rich Eldridge was featured on Panorama, Britain’s New Banking Scandaland the team was extensively quoted in the press.

Successfully defending a £300 million property portfolio

Defending a huge property portfolio controlled by the Tchenguiz family. The bank demanded repayment of £250 million and attempted to appoint administrators. The case involved a high profile hearing in the High Court.

£50 million win

Winning a £50 million debt reduction as part of a settlement. The settlement is structured as a sale of the bank’s debt at a discount. The structure creates a financially stable business with a platform for growth

Related expertise

Latest tweets by @penningtonslaw

Penningtons Manches Cooper LLP

Penningtons Manches Cooper LLP is a limited liability partnership registered in England and Wales with registered number OC311575 and is authorised and regulated by the Solicitors Regulation Authority.

Penningtons Manches Cooper LLP