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Are the times ripe for “super senior” capital structures that include term loan debt?
In this Spotlight article Francesco Lione considers the pros and cons for rolling out “super senior” capital structures that include term loan debt, in addition to or as an alternative to secured bonds.
19 March 2024Increasing interest? Hedging considerations in light of rising interest rates
If what goes up must come down, then what comes down will go back up; such is the case with interest rates. Taking approximate figures for three-month ICE GBP LIBOR (source: Bloomberg): an increase in that rate from 0.26 bps on 31 December 2021, to 3.36 bps on 1 November 2022, appears steep. It is easy to forget that the same rate was 6.3 bps on 30 September 2008. The present rising interest rate environment is refocussing the minds of borrowers on the importance of hedging interest rate risk.
19 March 2024Fixed and floating charges: still favouring absolutism over multi-factored nuance
The academics did not fare well in Re Avanti Communications Ltd (in admin) [2023] EWHC 940 (Ch). Edwin Johnson J determined that the security in issue was fixed, not floating, but not without finding himself in respectful disagreement with Beale, Bridge, Goode (if only by book title), Gullifer and Worthington. It is perhaps predictable that one of us might rush to a defence. I hesitated, appreciating that judges are not similarly free. But the issue is important, and the approach advocated in Avanti appears, with the greatest respect, and even greater admiration for the unravelling of security documents needed in that case, to be unsupported by the cases and unworkable in practice. In short, even if the answer is right (space prevents that being addressed here), the means of reaching it is surely not. What follows seeks to defend that claim, and also to address further issues raised in Avanti which continue to create unnecessary confusion in this area.11 1
18 March 2024Rethinking rights of use as an English law concept after Brexit
The enforceability of rights of use in English law was often doubted until legislation implemented the EU Financial Collateral Directive in 2003. Statutory safeguards are likely to be retained in a similar form post-Brexit but are not comprehensive nor free from uncertainties. This Spotlight article argues that it is time to rationalise rights of use as a valid concept under English common law.
18 March 2024Crying wolf: the effect of sub-participants exercising control over lenders in the medium-term loan market
In this Spotlight article Matthew Hoyle considers the effect that secondary duties in sub-participation agreements (duties which control the principal lender’s exercise of powers) may have on the validity of the exercise of rights and powers in the underlying loan agreement.
18 March 2024Large language models: a legal liability minefield
This Spotlight article explores the rise of large language models (LLMs) in various sectors, emphasising their limitations and legal challenges. It discusses the issues with using LLMs to handle specialised tasks effectively, and the legal risks tied to their use, such as unreliable information and copyright issues.
18 March 2024Digital Assets: why the Law Commission are wrong about control
The article discusses the recent Law Commission report on Digital Assets and argues that the proposals for relativity of title to such assets are critically flawed.
18 March 2024“Debtor-in-possession” processes and moratoria in English restructuring and insolvency law: a hesitant journey
This Spotlight article explores the efficacy of the relatively new moratorium procedure introduced under the Corporate Insolvency and Governance Act 2020 and whether the existing domestic legislation already housed a more effective debtor-in-possession rehabilitative procedure in the form of the “light-touch” administration and if so, why it has thus far been largely overlooked.
18 March 2024
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