Tag Archives: security interest

Validity of bridge loans in pre-insolvency scenarios in Germany

In the context of German restructuring, bridge loans (Überbrückungskredite) are loans that are granted to financially distressed companies until a restructuring plan is formulated in order to avoid the company’s insolvency. In most cases, such loans are granted for a limited timeframe. After the restructuring plan has been finalized, renegotiations are usually required, in particular between the … Continue Reading

Second ranking charges – No assets, no charge?

The recent Court of Appeal decision in Saw (SW) 2010 Ltd and another v Wilson and others (as joint administrators of Property Edge Lettings Ltd) is the first case to address the effect of automatic crystallisation of an earlier floating charge upon a later floating charge. In order for a floating charge to be a … Continue Reading

German Supreme Court: Loan Administration and Management Fees are invalid

The German Federal Supreme Court for Civil Matters (Bundesgerichtshof – BGH) held in two cases on 4 July 2017 that provisions contained in the standard contracts of banks providing for the payment of management or loan administration fees (Bearbeitungsentgelt) by the borrower is invalid under German law, irrespective of whether the borrower is a consumer … Continue Reading

New Year; New Personal Insolvency Regime for Slovakia

The Slovak personal insolvency regime will change on March 1, 2017. The new system is aimed at opening personal insolvency to a wider debtor audience, while keeping it simple and cost effective. Today, only those individuals with assets over EUR 1,659.70 could seek a declaration of bankruptcy. Otherwise, the proceedings would be stopped and the doors … Continue Reading

Why financiers should consider taking security over short leases

When we review security for financiers, we always consider what enhancements they might implement to strengthen their security net. As part of this approach, we obtain a proprietor search from the Land Registry to see if there is any uncharged property in the name of the borrower. Often, any property identified is a short to … Continue Reading

Lehman Brothers, the judicial gift that keeps on giving…..

Latest Lehman judgment reassures end users on Close-out Rights It is undeniable that the legal complexities, and unprecedented facts, of the long running Lehman Brothers saga have generated a wealth of legal principal, most notably through the Waterfall series of litigation. Against the background of administration, this trilogy (creatively named Waterfall I Application, Waterfall I Appeal and the upcoming Waterfall … Continue Reading

Do we need to fear a Grexit?

Is it legally possible that Greece ceases to be a member of the Eurozone without exiting the EU and without changing the treaties which establish the European Union and what consequences would this have for existing contracts and outstanding bonds? We consider whether it is legally possible for Greece to cease being a member of … Continue Reading

How the Financial Crisis in Spain has Affected Enforcement of Secured Loans

TMA Europe held its second roundtable discussion in Madrid, Spain on Thursday May 28, 2015. The Roundtable featured a panel of senior professionals from central banks, regulators and law firms, together with alternative investors, PE firms and financial advisory firms. Fernando Gonzalez, a partner at Squire Patton Boggs in Madrid, spoke about the recent changes in the banking field in Spain … Continue Reading

But I Didn’t Mean to…Subjective Intent Does Not Determine the Effect of a UCC Termination Statement

According to a recent decision from the Delaware Supreme Court, a secured party bears the burden of any mistakes in its security documents.  Official Comm. of Unsecured Creditors of Motors Liquidation Co. v. JPMorgan Chase Bank, N.A., No. 325, 2014 Del. LEXIS 491 (Del. Oct. 17, 2014) (“Del. Op.”).  The Court’s decision is a wake-up … Continue Reading

Invoice discounting agreements: What Administrators Should Know

Invoice finance has dominated the lending landscape in 2014 and has outperformed all other types of business lending in the UK.  We examine below many issues which may arise in the restructuring of those businesses funded by invoice discounters. 1. Isn’t invoice discounting just a form of finance like any other? Yes and no. Invoice … Continue Reading

Did You Ever Hear Of A Floating Lease?

Most lawyers are generally familiar with the concept of a floating lien under the Uniform Commercial Code. A secured creditor takes a lien in a collateral category that changes from time to time as items are added or subtracted. A common example is a working capital loan, in which financed inventory is produced and sold, then … Continue Reading
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