Eraaya Lifespaces Seeks Dismissal in UK FCCB Dispute

Eraaya Lifespaces Ltd has intensified its legal battle in London’s High Court, seeking to dismiss claims brought by bondholders in the contentious FCCB dispute. The company argues that the bondholders lack legal standing, as the dispute primarily concerns $40 million in proceeds allegedly withheld by its investment adviser, Elara Capital.

Key Highlights

• Eraaya issued FCCBs worth $120 million in August 2024, following shareholder approval.
• $40 million of the proceeds remain locked with Elara Capital, sparking litigation.
• Bondholders were permitted by the court to join the proceedings, complicating Eraaya’s position.
• Justice Cockerill previously dismissed Eraaya’s attempt to force release of funds, citing procedural issues.
• Eraaya now seeks summary dismissal of bondholders’ claims, arguing they are not valid parties to the dispute.
• The outcome could set a precedent for FCCB-related disputes involving Indian companies in UK courts.

Sources: ICLG, Business Standard, BAILII Court Records