GRUPO HOTELERO URVASCO SA V CAREY VALUE ADDED SL [2013] EWHC 1039 (COMM) – INTERPRETING “MATERIAL ADVERSE CHANGE” AND “EVENTS OF DEFAULT” CLAUSES IN FINANCE DOCUMENTS

Wednesday, June 12, 2013
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Grupo Hotelero Urvasco SA (the Borrower) sought declaratory relief concerning the right of Carey Value Added SL (the Lender) to cancel a loan agreement (the Agreement) and also claimed damages for the Lender’s refusal to advance further funding. The Lender counterclaimed for the repayment of sums advanced by it under the Agreement. The case dealt with the issue of “materiality” in material adverse change (MAC) clauses, and acts which constituted events of default under the Agreement.

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