PCP Capital Partners LLP and PCP International Finance Limited v Barclays Bank Plc

Judgment has been delivered in long-running proceedings by the Honourable Mr. Justice Waksman, following a hybrid trial in the Commercial Court in June, July and parts of August and October 2020.

The proceedings concerned Barclays Bank’s recapitalisation in October and November 2008, at the height of the global financial crisis. The Claimants (“PCP”) claimed in deceit. They alleged that the Bank had represented to PCP (in summary and amongst other things) that (i) special purpose vehicles owned by PCP were getting the ‘same deal’, in the re-capitalisation, as entities associated with the State of Qatar; and (ii) a fee of £66 million being paid by the Bank to the Qatari interests was related to an earlier capital-raising transaction.

The Bank denied making these misrepresentations. The Court held that the Bank made these representations, those representations were false and they were made knowing them to be false and intending PCP to rely upon them.

The Court also held that PCP had relied upon these misrepresentations and, if they had not been made, then PCP would have discovered the truth. The Court held that PCP would then have negotiated with Barclays for the same deal, pro rata as the Qatari interests and would have obtained additional value of £615 million for its investment.

However, the Court also held that PCP would not, in this counterfactual situation, have been able to raise sufficient non-recourse debt finance and it would have lost its interest in the transaction. Accordingly, the Court held that the Bank was not liable in damages to PCP.

Robert Weekes acted for the Claimants.

Please find the Judge’s executive summary of the judgment here and the full judgment here.