Dechert Secures Significant Victory in Bondholder Litigation Jury Trial

Dechert LLP secured a significant US$171M unanimous jury trial verdict for Pathfinder Strategic Credit LP and BC Investment LLC, two funds managed by Argentem Creek Partners LP, in the New York Supreme Court’s Commercial Division.

The case is a significant step forward in complex international bondholder litigation against nine Berau entities, including the bond issuers and guarantors. The defendants are all affiliates of Indonesian coal producer Berau Coal Energy. The bonds have been in default since 2015. 

Commercial bondholder suits are rarely decided by jury trial, and the victory demonstrates to the public bond markets that payment defaults on uncertificated electronically traded securities can be successfully tried to verdict based on electronic data, even in the face of every evidentiary objection. The actions in this case were filed in 2017, with a jury selected on April 8, 2019, and the verdict in favor of the plaintiffs rendered on April 17, 2019.

This victory comes as Dechert continues to advise Argentem Creek as lead international counsel in one of the most significant global restructuring disputes. The dispute involves parallel proceedings in New York State and Federal Bankruptcy Court, and in Singapore relating to Berau’s default on outstanding bond principal of over US$750 million. 

The Dechert team advising Pathfinder Strategic Credit and BC Investment in the commercial bondholder jury trial was led by partner Gary Mennitt.

Partners Adam Silver, Dennis Hranitzky and Allan Brilliant are advising on the international and insolvency proceedings.

About Dechert

Dechert is a leading global law firm with 27 offices around the world. We advise on matters and transactions of the greatest complexity, bringing energy, creativity and efficient management of legal issues to deliver commercial and practical advice for clients.