Liberty GTS and consortium of insurers pay out €50 million FSN Capital W&I claim

The buyer side W&I policy was issued for FSN Capital’s acquisition of Gram Equipment from Swedish-based Procuritas in January 2018. FSN Capital filed its insurance claim in June 2018 claiming the seller had breached several of the warranties in the share purchase agreement, including warranties on the seller’s duty of loyal disclosure and accounting material by (according to press reports) providing false and misleading information in the sales process. We wait to see if a subrogation claim will follow against the seller (according to W&I policy terms subrogation is usually waived except where there has been seller fraud) given the language of the related claim press statements. 9.4.2019