DE Shaw, Bracebridge Lose Bid for Libor Zombie Payout (1)

Funds seeking a payout on an obsolete type of capital issued by Standard Chartered Plc lost a London court ruling, triggering the biggest drop in the securities since early 2023.

DE Shaw & Co. LP and Bracebridge Capital LLP had bought up preference shares issued by the lender in 2006 that are pegged to the now-defunct London interbank offered rate, or Libor. They were betting that the securities would be called at par since Libor is no longer available.

But the London High Court ruled Tuesday that the shares contain “an implied term that the reasonable alternative” to Libor is ...