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Clifford Chance

Clifford Chance


Clifford Chance Comment: First High Court case in Japan – Arranger's liability in syndicated loan transactions (English)

22 August 2011

On 14 April 2011, the Nagoya High Court issued a judgment ordering the arranger in a syndicated loan transaction to pay to the participating financial institutions a total of approximately JPY300 million in damages resulting from a breach of its obligation to provide information. The judgment came as the first High Court judgment in Japan to rule on the arranger's breach of this obligation. It has been attracting much attention and has been the centre of much discussion in the market. One of the reasons is that the Nagoya High Court overturned and affirmed the arranger's liability after such liability was previously denied by the Nagoya District Court in the first instance.

This briefing briefly explains the judgment and discusses future actions to be taken in light of the judgment. To view an English version of this briefing, please click on the link below.

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