Cukurova Finance International Ltd & Anor v Alfa Telecom Turkey Ltd [2013] UKPC 20 is a supplementary judgment to an earlier decision, reported on in our April 2013 insolvency legal update.

In that decision the Privy Council held that a lender's acceleration and appropriation of shares (charged as security on default) was valid, but concluded that it had jurisdiction in equity to grant relief from forfeiture.

In this supplementary judgment the Privy Council considered the circumstances in which relief from forfeiture should be granted. The chargees were permitted to recover the shares on the condition that (among other things) they pay US$1,564,719,492.62 to the lender within 60 days of the judgment, plus further interest accruing between the date of this judgment and the date of payment.

In reaching these findings the majority of the Privy Council commented (amongst other things) that in the exceptional circumstances at hand, it would be inequitable and unconscionable to insist on redemption taking place on a basis that treated the loan as if it had remained continuously outstanding as the lender contended.

See Court decision here.