HSBC Bank Plc v Pearl Corporation SA & Ors [2019]

HSBC Bank Plc v Pearl Corporation SA & Ors [2019] EWHC 231— 8 February 2019 (Sir Ross Cranston)

“HSBC advanced USD3Om for the acquisition of 2 vessels. A subsequent fall in the freight market resulted in the owning entities being in breach of the financing arrangements. The Bank sought to enforce its claim under the personal guarantees (which were subject to English jurisdiction but Greek law). The guarantor argued that the Bank's conduct had been contrary to a principle of "good faith" enshrined in Greek law. The High Court found that the allegations against the Bank — including a) failing to compromise with borrowers b) taking time to negotiate debt restructuring, c) refusing a 'haircut' to the debtor and d) preferring one customer to another — were not made out and that the Bank's claim succeeded in full.”

Antonino Cordopatri
E. G. Arghyrakis & Co.
13rd February