A landmark High Court judgment relating to the restructuring of IMO Car Wash has dealt a blow to junior lenders who invested in private equity deals that have turned sour.
A raft of law firms and chambers including Latham & Watkins, Lovells and Gide Loyrette Nouel advised on the restructuring, with the court yesterday (11 August) approving schemes of arrangement which hand control of IMO to the consortium of banks – led by HBOS – which financed the £450m leveraged buyout of IMO in 2006. Hedge fund investors will lose their investment and receive no equity in the company.
