Comments on: Exit consents, UK law, and common sense http://blogs.reuters.com/felix-salmon/2012/08/01/exit-consents-uk-law-and-common-sense/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: RightPaddock http://blogs.reuters.com/felix-salmon/2012/08/01/exit-consents-uk-law-and-common-sense/comment-page-1/#comment-42265 Fri, 03 Aug 2012 00:20:34 +0000 http://blogs.reuters.com/felix-salmon/?p=16760#comment-42265 @briangreen – I would not be assuming that all UK judges are over endowed with much common sense

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By: briangreen http://blogs.reuters.com/felix-salmon/2012/08/01/exit-consents-uk-law-and-common-sense/comment-page-1/#comment-42225 Thu, 02 Aug 2012 10:40:55 +0000 http://blogs.reuters.com/felix-salmon/?p=16760#comment-42225 I agree with GRRR! UK judges are actually free to use common sense than any other countries like US. http://www.aswdlaw.com

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By: MrRFox http://blogs.reuters.com/felix-salmon/2012/08/01/exit-consents-uk-law-and-common-sense/comment-page-1/#comment-42220 Thu, 02 Aug 2012 04:01:33 +0000 http://blogs.reuters.com/felix-salmon/?p=16760#comment-42220 The key thing IMO about these ‘exit consents’ is the matter of when they are created. Unlike the dual-class share structure at FB, which was there from the pre-IPO and all holders of the stock knew about it when they chose to buy the shares, these ‘consents’ are created after the fact. In effect a majority of holders are creating a new bond clause that threatens to effectively expropriate some or all of a minority’s value in the item.

Doesn’t fly on an ethical level IMO, and by very loose analogy, on a Constitutional one either – contract clause, bill of attainder clause, ex post facto clause. (None of those are directly applicable IMO, but the ethical inspiration for each of them is violated by these after-the-fact exit clause things.) That said, they are convenient and extremely persuasive restructuring devices – almost as good a cocked and loaded .45 held to the bondholder’s temple.

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By: realist50 http://blogs.reuters.com/felix-salmon/2012/08/01/exit-consents-uk-law-and-common-sense/comment-page-1/#comment-42213 Wed, 01 Aug 2012 23:58:28 +0000 http://blogs.reuters.com/felix-salmon/?p=16760#comment-42213 That specific change seems so punitive that it is akin to reducing principal dramatically – as opposed to subordinating the old bonds to the new bonds, which seems more the norm for this sort of restructuring.

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By: GRRR http://blogs.reuters.com/felix-salmon/2012/08/01/exit-consents-uk-law-and-common-sense/comment-page-1/#comment-42207 Wed, 01 Aug 2012 20:28:15 +0000 http://blogs.reuters.com/felix-salmon/?p=16760#comment-42207 “This is actually one of the things I like about UK law: judges are perfectly free to use common sense, instead of taking everything to its logical conclusion.”

Could not agree more, except on a different case: Apple v. Samsung.

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