Macquarie Bank Ltd v Graceland Industry Pte Ltd

Providence Law Asia is pleased to announce that the team of Abraham Vergis, Lim Mingguan and Kim Shi Yin successfully represented an Executive Director of Macquarie Bank Limited (“MBL”) in a suit in the Singapore International Commercial Court arising from an over-the-counter forward swap between MBL and a subsidiary of a Chinese state-owned enterprise. MBL had brought a claim for payment arising from the swap and the Chinese subsidiary brought counterclaims in, among other things, mistake and misrepresentation. The Court granted MBL’s claims and dismissed the Chinese subsidiary’s counterclaims in their entirety. The decision is of particular interest as it provides clarification on how the “Close-out Amount” under Clause 14 of the ISDA Master Agreement, a widely used document in the derivatives market, is to be calculated. Read more here: Macquarie Bank Ltd v Graceland Industry Pte Ltd