Payne Hicks Beach

Payne Hicks Beach

24 September 2021

Case Analysis: Contract interpretation of equity commitment letter

Case analysis by Emily Woodwark, Associate in the Dispute Resolution department at Payne Hicks Beach, of Lopesan Touristik v Apollo European Principal Finance Fund, first published by Lexis ®PSL on 23 August 2021. 

This case concerned the interpretation of an equity commitment letter (ECL) governed by English law under which the defendant had agreed to provide €93m to its indirect subsidiary for it to purchase a hotel business from a third party. The share purchase agreement governing the underlying transaction never completed due to the coronavirus (COVID-19) pandemic and is now the subject of Spanish litigation. The parties asked the High Court to consider seven issues of interpretation of the ECL including whether the defendant was obliged to put its indirect subsidiary in funds in circumstances where there was a dispute regarding the underlying transaction. The High Court found against the defendant on all issues bar one.

For further information, please contact Emily Woodwark by email or alternatively phone 020 7465 4300

Emily is a specialist dispute resolution lawyer and part of the firm's top ranked Dispute Resolution department that focuses on providing specialist advice on all areas of disputes, including commercial disputes, contentious trust and probate matters, intellectual property issues, insolvency, property disputes, professional negligence & regulations, sports disputes and more. With renowned expertise, the team handles complex litigation at the highest level and also resolves disputes by other means such as mediation. The team works for a variety of high net worth and ultra high net worth clients, including those with a complex international angle. Clients highly value its exceptional level of service, astute financial acumen and unparalleled levels of support and is recognised across the industry as one of the best dispute resolution teams in the UK.

Click below to read Emily's case analysis for Lexis®PSL 

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This publication is not intended to provide a comprehensive statement of the law and does not constitute legal advice and should not be considered as such. It is intended to highlight some issues current at the date of its preparation. Specific advice should always be taken in order to take account of individual circumstances and no person reading this article is regarded as a client of this firm in respect of any of its contents.

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