Clifford Chance
The Kaupthing Case – Playing by the Rules: A Supreme Court win for Bondholders in Icelandic Bank administrations
24 October 2011
On 19 October the Supreme Court handed down its judgment in the case of Re Kaupthing Singer and Friedlander Limited (in administration)[2011] UKSC 48. The appeal was concerned with a long standing principle of insolvency law known as the rule against double proof and has been eagerly awaited since it deals with an important issue in the context of guarantees and recourse to those guarantees when a party becomes insolvent. In this case the guarantor, Kaupthing Singer & Friedlander Limited (KSF) and the principal debtor, Kaupthing & Singer Funding plc (Funding) were both in administration.
