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ACON EQUITY MANAGEMENT LLC – V – APPLE BIDCO LIMITED

PCB acted for private equity firm ACON in a claim for a US$4m payment upon exiting its investment in an energy company. ACON had been part of a consortium of private equity firms that had invested, but was unhappy with the way in which its fellow investors wished to manage the company. It therefore negotiated an exit which involved the return of its US$100m investment and an additional payment of US$4m on the fulfilment of a condition that the energy company would not suffer a penalty from its lenders. The defendant claimed that the condition was not fulfilled saying that certain terms that the lenders had imposed upon the energy company amounted to a penalty within the meaning of the condition. PCB succeeded in persuading the Court that the interpretation of the condition contended for by the defendant was wrong, and obtained judgment for US$4m.