Priority Where a company has several major financiers, issues arise as to priority of entitlements to repayment. The general position on a winding-up is that creditors who are unsecured are treated pari passu. If there is a shortfall in assets, they are paid proportionate to the balance, if any remaining after payment of preferential creditors, […]
Category: Lending
Loan Market Documents
Loan Market Association The Loan Market Association is a European body of banks and lenders. It has developed the primary and secondary loan market in Europe through the provision of standard documentation for primary and secondary syndicated loan markets, the establishment of standard market practice, issue of guidance, education, training and lobbying. It operates through […]
Restructuring
Insolvency Context The alternatives to a workout may be liquidation, receivership or examinership. If a lender has a debenture over all assets, it may be in a position to secure control over the entire undertaking. Examinership gives a period in which to formulate a proposal for the survival of a business. The rights of creditors […]
Wholesale & Interbank Lending
Wholesale Banking Wholesale banking refers to banking services provided by banks to large corporate entities, public authorities. A loan may be advanced by single bank or by a syndicate of banks. It covers a range of service including treasury, cash management and lending requirements. Finance may be required in relation to mergers and acquisitions as […]
Consumer Credit [EU]
Consumer Credit Directive EU states must ensure persons offering credit obtain authorisation. They must be regulated and inspected; Bodies must be established to provide information and advice to consumers in relation to credit agreement and complaints. The EU directive on consumer credit harmonises many of the general conditions and information obligations in the area of […]