TMF Trustee Ltd and Others v Fire Navigation Inc and Others – QBD (Comm Ct) (Phillips J) [2019] EWHC 2918 (Comm) – 1 November 2019

Guarantee – Loan Agreement for purchase of vessels – Buyers’ obligations guaranteed by guarantor – Guarantee containing “No Set-Off” clause – Lenders suing borrowers and guarantor and applying for summary judgment – Defendants raising defence based on “prevention principle” – Whether “No Set-Off” clause prevented defendants relying on “prevention principle”

Pursuant to a loan agreement dated 29 June 2009 and amended on 23 December 2016 the third and fourth claimants (the Lenders) provided the first and second defendants (the Borrowers) with a loan facility of US$69,020,047 to finance the acquisition of two vessels. The first and second claimants were parties to the loan agreement as Security Trustee and Agent respectively.