In a recent case, Edgeworth Capital (Luxembourg) S.A.R.L and another v Ramblas Investments B.V [215], the High Court held that a €100m upside arrangement fee was not a penalty, even though it was payable on an acceleration of the facility as a result of a cross-default under a related personal loan. The case contains a useful summary of the current law on penalties, and is further evidence that the courts are usually unwilling to interfere with unambiguous terms in business contracts.
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