Nil loss argument again rejected: reliance on section 2(a)(iii) of ISDA Master Agreement is denied following automatic early termination (High Court) | Practical Law

Nil loss argument again rejected: reliance on section 2(a)(iii) of ISDA Master Agreement is denied following automatic early termination (High Court) | Practical Law

In Pioneer Freight Futures Company Ltd v TMT Asia Ltd [2011] EWHC 778 (Comm), the High Court has again considered the effect of the Automatic Early Termination, Loss and Second Method provisions of a 1992 ISDA Master Agreement and concluded that a non-defaulting party cannot rely on section 2(a)(iii) of the agreement to disregard amounts owed to a defaulting party either before or after Automatic Early Termination.

Nil loss argument again rejected: reliance on section 2(a)(iii) of ISDA Master Agreement is denied following automatic early termination (High Court)

by PLC Finance
Published on 21 Apr 2011 • England, Wales
In Pioneer Freight Futures Company Ltd v TMT Asia Ltd [2011] EWHC 778 (Comm), the High Court has again considered the effect of the Automatic Early Termination, Loss and Second Method provisions of a 1992 ISDA Master Agreement and concluded that a non-defaulting party cannot rely on section 2(a)(iii) of the agreement to disregard amounts owed to a defaulting party either before or after Automatic Early Termination.