US District Judge L. Denise Cote on Monday (15) endorsed the joint status letter submitted by Hamilton Reserve Bank (HRB) and Sri Lanka, which outlined the schedule for the subsequent proceedings of the case.
Both parties submitted this joint status letter in accordance with the order issued by US District Judge Cote on 20 April.
The schedule provided therein outlined specific deadlines, including completion of discovery by 20 June, submission of summary judgement motions by 26 June, submission of opposition to summary judgement and/or cross-motions to stay by 17 July, filing of summary judgement replies by 13 July, filing of opposition to the cross-motion to stay by 14 August, and cross-motion to stay reply by 31 August.
Furthermore, on 11 May, the Protective Order signed by the counsel for Sri Lanka – Clifford Chance US LLP – and the counsel for HRB – Bleichmar Fonti & Auld LLP – regarding the procedures to be followed and which shall govern the handling of confidential material was so stipulated by US District Judge Cote.
The Stipulated Protective Order sets out in detail the procedure on how parties can designate certain information as confidential, to whom such confidential information may be disclosed, and the manner in which such confidential information shall be disclosed.
According to the terms of the Stipulated Protective Order, this order shall survive the termination of this litigation between HRB and Sri Lanka and further provides that the United States District Court for the Southern District of New York shall retain jurisdiction over all parties to enforce obligations and impose sanctions.
This action was instituted by Hamilton Reserve Bank on 21 June 2022 before the United States District Court for the Southern District of New York, on the grounds of breach of contract due to Sri Lanka’s default on its ISBs due on 25 July 2022.
Hamilton Reserve Bank is seeking full payment of the principal and interest owed to it by Sri Lanka, amounting to $ 257.5 million.
According to Hamilton Reserve Bank, Sri Lanka’s 12 April 2022 decision to temporarily halt its foreign debt servicing and Sri Lanka’s failure to make interest payments due on its 5.75% ISB expiring on 18 April 2023 and the 6.75% ISB expiring on 18 April 2028 amounted to a continuing and uncured ‘Events of Default’.
This, according to HRB, entitled it as the holder of not less than 25% in aggregate principal amount of the 25 July ISBs in terms of Article 5.1 of the 25 July ISB indenture to declare that the full principal amount and accrued interest on the particular bond series was immediately due and payable.