CONCORD TRUST v LAW DEBENTURE TRUST CORPORATION PLC

[2005] 2 Lloyd's Rep. 221

HOUSE OF LORDS

Before Lord Steyn, Lord Hoffmann, Lord Hutton, Lord Scott of Foscote and Lord Walker of Gestingthorpe

Issue of bonds by defendant under trust deed - Issue guaranteed by defendant’s parent company - Terms of issue allowing defendant to give notice to accelerate redemption of bond in case of “event of default” - Bond holders alleging that event of default had occurred - Defendant only prepared to give notice if given indemnity from claim by guarantor - Whether giving of notice in absence of event of default would be ineffective or would amount to breach of contract with guarantor.