Lloyds Seeks Trading Suspension of Notes Before Dispute Ruling

Lloyds Banking Group Plc asked market supervisors to suspend trading of some of its bonds as it awaits a judge’s ruling on whether it can redeem the debt early.

The U.K.’s biggest housing lender said in a statement Wednesday it sought the suspension of the Enhanced Capital Notes by the Financial Conduct Authority.

The Chancery Division of the High Court of Justice in London is scheduled to rule on whether Lloyds can redeem the high-interest capital securities before they mature. The ruling may affect investment decisions, meaning a suspension is “appropriate,” Lloyds said in the statement.

Lloyds wants to buy back the notes because regulators no longer count them as capital and the bank says it has the right to redeem them. Holders are challenging the interpretation.

The case is: BNY Mellon Corporate Trustee Services v. LBG Capital No. 1 PLC & Anr, High Court of Justice, Chancery Division, HC-2015-001336.

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