Longer and longer: the ever lengthening loan agreement

Longer and longer: the ever lengthening loan agreement

European Leveraged Finance Customer Alert Series

Leveraged loan agreements form key facets of money structures, balancing loan provider security against enabling the debtor to perform its company based on its business strategy. In recent years, the length of such loan agreements has increased significantly, and White & Case investigates the causes behind this.

The data

To offer some context, think https://paydayloansexpert.com/title-loans-nd/ about the after. The present LMA-form senior multicurrency term and revolving facilities contract for leveraged purchase finance deals (senior/mezzanine) (excluding footnotes) is 314 pages very very long. A sample leveraged loan agreement is 205 pages very very long whereas an example equivalent is 473 pages very long. This extremely summary that is brief exactly just exactly how in market examples (and as time passes), the size of loan agreements has increased considerably. This is often related to a true quantity of reasons, a number of that are talked about below.

Practical experience, evolution and flexibility

Before concentrating on certain areas, while there might be many and varied reasons for longer documents we might claim that the main reasons are: (i) the effect of working experience, (ii) freedom (or most frequently a mixture of (i) and (ii)) and (iii), the development of documents.

With regards to working experience, particular conditions are added with time to prevent inadvertent and/or technical defaults under appropriate documents, in specific through a wide range of improvements up to a document’s construction clause. Having said that, particular provisions that are additional been added to allow borrowers to possess increased freedom in attaining their functional objectives and/or avoiding any inhibitions to their company. Read more of this post

Low-income Borrowers Claim Harassment by Microfinance Companies in Asia

Low-income Borrowers Claim Harassment by Microfinance Companies in Asia

Protests happen staged in many states over so-called coercive measures to recover re re payments.

Kolkata — Tensions are simmering in Asia’s microfinance sector as borrowers stage protests, claiming they’ve been being harassed over loan re payments.

Microfinance organizations offer little, collateral-free loans to ladies in low-income teams who possess trouble accessing formal services that are financial. Microfinance financing is usually a delicate governmental problem in Asia. Within the past, governmental leaders used financial obligation waivers as an easy way of wooing voters.

In September, nearly 100 females borrowers staged a sit-in at Patiala when you look at the north state of Punjab, alleging coercive recovery means of loan payments. Then, in October, a huge selection of feamales in the eastern state of Assam staged a protest that is similar. Read more of this post