Law firm CMS Cameron McKenna has advised a consortium of insurers about a £44m buyer's insurance policy. This has secured budget airline easyJet against claims for breach of warranty in relation to its £374m acquisition of Go.
This type of insurance policy has been developed to give buyers comfort on warranty claims where the sellers are mainly institutional shareholders, who customarily do not give warranties. The insurance broking services were
provided by HSBC while AIG was the lead underwriter.
CMS Cameron McKenna's role in the transaction included detailed reviews of the share purchase agreement, due diligence reports and disclosure letter with a view to pinpointing particular areas of risk for the underwriters.
It also included advice as to the wording of the insurance policy itself. It marks a continuing development of the firm¹s insurance practice into transaction support
Insurance partner Stephen Tester said: "We have been involved in the development of AIG's warranty & indemnity products from the outset and feel that the cutting edge 'purchaser's side' protection afforded here is particularly exciting. As a result it was good to be able to see this transaction through to completion."
