Essity’s Attempt to Dismiss Bondholder Lawsuit Rejected by Court

A London judge rejected Essity AB’s request to dismiss a lawsuit by a group of bondholders including Oaktree Capital Management and Sona Asset Management, who claim the Swedish personal-care company breached debt terms and owe early repayment.

“There is a serious issue to be tried,” wrote Judge Timothy Fancourt of the London High Court in a judgment handed down on Monday. A lawyer for Essity had argued at a hearing in May that there wasn’t, and that the plaintiffs who brought the suit aren’t the “proper parties” to bring such claims as they didn’t directly hold the notes.