LPC Law Notes Finance and Capital Markets Notes
A collection of the best Capital Markets and Loans* notes the director of Oxbridge Notes (an Oxford law graduate) could find after combing through dozens of LPC samples from outstanding students with the highest results in England and carefully evaluating each on accuracy, formatting, logical structure, spelling/grammar, conciseness and "wow-factor".
In short, these are what we believe to be the strongest set of Capital Markets and Loans notes available in the UK this year. This collection is...
The following is a more accessible plain text extract of the PDF sample above, taken from our Finance and Capital Markets Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:
Amending Identified Problems in a Credit Agreement
What is the problem?
Why is it an issue?
Does the issue prevent the borrower from making any of the representations and/or complying with any undertakings in the Agreement?
What amendments will the Arranger want to include (i.e. which CPs to include)?
What amendments will the borrower wish to make?
Environmental Contamination of a prospective property acquisition
Why is it an issue?
Litigation costs
Clean-up costs could go into the millions of pounds
Costs of new valuations or environmental audit
Might have to close the business for a time whilst the problem is being rectified
Bad publicity
Reduce customers
Value of the property may fall
Lower security for the bank
Credit Agreement
Litigation pending or threatened
Financial Projections
Compliance with laws
Environmental clause
Amendments by Arranger (Bank)
New valuation of the property based on the environmental information that has come to light
Investigation into the costs of clean-up and establishing liability
Do not buy if the cost of clean-up is going to cost more than the value of the property
Borrower should gain an indemnity from the seller for the costs of clean up
Although it should be noted than an indemnity is only as good as the person giving it
Insist on insurance, in the event of some liability being proved
Minimise risk to employees
Erect a fence to rope or block off contaminated area
Obtain counsel’s opinion as to the success of a defence to a claim
Amendments by borrower
Negotiate a carve-out relating to particular litigation
Add a financial threshold
Add a timescale
De minimis threshold for Material Adverse Effect
Save as disclosed
Dispute with Supplier
What is it an issue?
Litigation costs
May need to find another supplier at a higher price or there may not be another
May need new goods which could disrupt business and prevent trade continuity
Supplier might refuse to supply other products to the target
Poor publicity if other suppliers find out that there is a sour-relationship
Depends on the value of the contract in issue
Will it have a severe impact on the syndicate’s decision to lend?
Credit Agreement
Litigation pending or threatened
Default under another contract
Amendments by Arranger (Bank)
Evidence that the claim has been settled
Amendments by the borrower
Excluding…or save as disclosed
De minimis provision
Property to be relocated
Why is it an issue?
Costs of defending the litigation
Costs of moving the property
Loss of revenue whilst property is closed
Is there a breach of planning laws?
Goodwill might be affected by bad publicity, the potential closure of the property or any...
Buy the full version of these notes or essay plans and more in our Finance and Capital Markets Notes.
A collection of the best Capital Markets and Loans* notes the director of Oxbridge Notes (an Oxford law graduate) could find after combing through dozens of LPC samples from outstanding students with the highest results in England and carefully evaluating each on accuracy, formatting, logical structure, spelling/grammar, conciseness and "wow-factor".
In short, these are what we believe to be the strongest set of Capital Markets and Loans notes available in the UK this year. This collection is...
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