Asset-Based Lending and Insolvency

Erscheinungsjahr 2022
ISBN: 978-1-904905-62-2
Verlag: Spiramus Press

Buch, Englisch, 336 Seiten, Paperback, Format (B × H): 156 mm x 234 mm

A unique guide to insolvency law, legal practice and asset-based lending. Asset-Based Lending and Insolvency outlines your options, and provides the practical tools and techniques to help recover debts, advances and assets - a clear competitive advantage.Key features and benefits: - Demonstrates the numerous options available to lenders when dealing with an insolvent borrower.
- Outlines the latest legal techniques covering all aspects of ABL and insolvency.
- Approaches, uniquely, the application of UK insolvency law from an entirely asset-based perspective.
- Supplies a clear overview of the regulatory framework for insolvency.
- Contains legal tips and suggestions for insolvency lawyers and practitioners.

Autoren/Hrsg.

Fachgebiete

• Wirtschaftswissenschaften Betriebswirtschaft Unternehmensfinanzen
• Rechtswissenschaften Wirtschaftsrecht Bank- und Versicherungsrecht Bank-, Sparkassen- und Börsenrecht
• Rechtswissenschaften Allgemeines Verfahrens-, Zivilprozess- und Insolvenzrecht Insolvenzrecht, Konkurs, Unternehmenssanierung
• Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Unternehmensfinanzierung

Inhaltsverzeichnis

- About the authors. iii
- Preface. v
- Abbreviations. viii
- Table of Contents. ix
- Tables of Authorities. xvii
- 1 Asset-Based Lending: an introduction. 1
- 1.1 Asset-based lending and the United Kingdom ABL market 1
- 1.2 Financing accounts receivable. 6
- 1.3 Asset Based Finance Facilities. 17
- 1.4 Additional Invoice financing Arrangements. 22
- 1.5 Inventory finance and floor-plan financing. 24
- 1.6 Taking Security Over Inventory. 26
- 1.7 Plant and machinery finance. 30
- 2 English Corporate Insolvency Law: core concepts. 38
- 2.1 Introduction. 38
- 2.2 Sources of English corporate insolvency law. 39
- 2.3 English insolvency legislation. 40
- 2.4 Definition of corporate insolvency. 41
- 2.5 Other key insolvency concepts. 43
- 2.6 English corporate insolvency procedures. 49
- 2.7 Licensed Insolvency Practitioners. 61
- 3 Insolvency as a Specified Event in ABL Facilities. 63
- 3.1 Specified events. 63
- 3.2 Absence of specified events. 73
- 3.3 Lender liability for wrongful acceleration and termination. 75
- 3.4 Practical considerations for the lender following a specified event 78
- 4 Working With ABLs and Their Distressed Clients. 85
- 4.1 Introduction. 85
- 4.2 Distressed Advisory. 85
- 4.3 Conflicts of interest 88
- 4.4 Formal Insolvency. 89
- 4.5 The decision to trade. 89
- 4.6 Going concern sale, particularly pre-packs and MBOs. 94
- 4.7 Collection of Receivables. 95
- 4.8 Stock / Inventory. 99
- 4.9 Realisation Strategy. 101
- 4.10. Other assets. 102
- 4.11. Insurance. 104
- 4.12. Syndicated lending. 104
- 4.13. General reporting and Estimated Outcome Statements (EOS) 105
- 4.14. Conclusion. 106
- 5 Collateral enforcement remedies available to asset-based lenders 107
- 5.1 Introduction. 107
- 5.2 Enforcement of debt purchase collateral 109
- 5.3 Enforcement of security interests: accounts receivable. 111
- 6 Liquidations. 121
- 6.1 Creditors Voluntary Liquidation (CVL) 121
- 7 Receiverships. 125
- 7.1 Introduction. 125
- 7.2 Administrative receivership. 125
- 7.3 A QFC, created before 15 September 2003. 127
- 7.4 Appointment procedure. 128
- 7.5 Appointment checklists. 131
- 7.6 Demand. 131
- 7.7 Adherence to the debenture. 131
- 7.8 Charge registration. 131
- 7.9 Personal liability of receivers. 132
- 8 Administration. 137
- 8.1 Administration regimes. 137
- 8.2 Who may appoint an administrator?. 137
- 8.3 Grounds for appointing an administrator. 139
- 8.4 When an administrator can be appointed. 140
- 8.5 Definition of an administrator. 141
- 8.6 Definition of a QFC. 142
- 8.7 How a QFC ABL appoints an administrator. 143
- 8.8 The effects of administration being granted. 150
- 8.9 Duties of an administrator upon appointment 152
- 8.10. Powers of the administrator. 154
- 8.11. Relationship between an administrator and secured creditors. 155
- 8.12. Payments by the administrator to secured creditors. 159
- 8.13. Ending an administration. 160
- 9 Reviewable Transactions (Antecedent Transactions or Detrimental Acts) 163
- 9.1 Introduction. 163
- 9.2 Preferences. 164
- 9.3 Voidable preference. 165
- 9.4 Extortionate credit transactions. 167
- 9.5 Avoidance of certain floating charges. 169
- 9.6 Transactions at an undervalue. 171
- 10 Set Off. 179
- 10.1. Definition. 179
- 10.2. Rights similar to set-off 179
- 10.3. Mutuality. 179
- 10.4. Set-off and the Insolvency Rules. 181
- 10.5. Insolvency set-off 182
- 10.6. The administration set-off rule (Rule 2.85) 183
- 10.7. CVAs. 183
- 10.8. Mutuality. 184
- 10.9. Does insolvency set-off apply to a secured creditor?. 185
- 11 European Insolvency Law. 187
- 11.1. Council Regulation on Insolvency Proceeding (the EC Regulation) 187
- 11.2. Articles of the EC Regulation relevant to ABLs. 188
- 11.3. The distribution rules: 202
- 11.4. Article 5: Third parties’ rights in rem, or secured rights. 202
- 11.5. Impact of Article 5 on ABLs. 207
- 11.6. Centre of main interest (COMI) 212
- 12 International Connections. 219
- 13 Insolvency Aspects of Multi-Lender Asset-Based Finance Transactions 221
- 13.1. Introduction. 221
- 13.2. The development of multi-lender ABL transactions in the UK. 222
- 13.3. Types of multi-lender ABL transactions. 223
- 13.4. Syndicating receivables purchase facilities. 236
- 13.5. Insolvency of the borrower or receivables purchase client: ‘true’ syndications and ‘club’ deals 242
- 13.6. Insolvency of the borrower or receivables purchase client: sub-participations 257
- 13.7. Lender insolvency: ‘true’ syndications and club deals. 260
- 13.8. Lender insolvency: sub-participations. 277
- Appendices.
- 1. Summary of Appointment of Administrators by Company or Directors (post 15 September 2003)
- 2.Forms 2.8B, 2.9B and 2.10B. 283
- 3.Notice of Appointment of an Administrator by holder of qualifying floating charge (Form 2.6B)
- 4.Statement of Proposed Administrator.
- 5.Minutes of a Meeting of the Board of Directors resolving to place the company into Administration
- 6. Statement of Affairs.
- 7. Deficiency Account
- 8. Retention of Title – sample clauses and commentary.
- 9. Reservation of Title Claim Questionnaire.
- 10. Retention of Title flowchart
- 11. Copy of Demand Letter from a Bank.
- Index.

Über Autor(innen)

Grant Jones is an insolvency accountant partner with Cooper Parry LLP. He also practises as an attorney, in-house with a UK hedge fund and as a consultant to the UK firm of Taylor Vinters and the Gibraltar firm of Ellul & Co, as well as having his own arbitration practice. He is a member of the Governing Council of the ICAEW, President of the London Society of Chartered Accountants and a Special Professor of Law at Nottingham University. Andrew Knight is the head of European Finance at Squire Sanders & Dempsey LLP, a leading authority on asset-based lending, and Guest Lecturer in Law, University of Nottingham.