In June 2011, judgment was entered for HSBC against the AHAB and Algosaibi defendants following the collapse of the trial before Flaux J. HSBC was claiming repayment of $90M under a number of credit facilities and guarantees. The defendants denied liability but, after 1 week of the trial, then admitted liability. As part of the same trial, three other banks also secured judgment against the same defendants under their own loans based upon admission of liability. Subsequently, the defendants failed to pay the judgment debts to any of the 4 banks.
HSBC obtained interim charging orders against various London properties. The other 3 banks sought to challenge such orders on the basis that they ought to be able to share in the proceeds and that HSBC's charging orders should not be made final. Flaux J rejected this challenge and held that the objections of the other bank judgment creditors were insufficient.
A further hearing is scheduled for later this year at which the objections of the judgment debtors will be considered.
The judgment is here.
Tim Lord QC represented HSBC.