Loan Collateralisation and Creditor Protection

Loans of any nature require perfect collateralization so as to be prepared for the worst-case scenario. Only a secured loan reduces the risk of a loss and is a reliable investment. In critical situations specialist expertise is needed to find a flexible response to the given exposure. BBL has developed a high level of competence through its many years of consulting work, especially in distressed situations.

There is a wide scope of design for securing a loan. BBL prepares the appropriate contracts, negotiates them and ensures that they also hold up in insolvency proceedings. The negotiation of pool agreements and legal advice to creditor pools also forms part of BBL’s scope of services.

In the event that the realization of a security/ collateral is necessary BBL will assert and enforce all rights out of and in connection with, and as set forth in, the collateral agreements. The execution of pool agreements in insolvency proceedings, negotiating with insolvency administrators, participating in creditor committees are just a few of the services provided by our law firm. We pay particular attention to the perfect handling of creditors in restructuring situations. The demands arising from the jurisdiction and the design of bridge restructuring loans, their collateralization and post-collateralization for existing loans are extremely critical and the collateral may easily be forfeited. BBL’s scope of experience also encompasses the preparation of restructuring appraisals and the calibration of collateral to imminent restructuring situations as much as the support of collateral pools in restructurings.

In complex restructuring cases title to shares and collateral is frequently transferred to a trustee. Over the past years BBL have taken on large-scale trustee assignments on behalf of companies or their creditors in which BBL negotiated the terms and conditions of the agreements, designed the set-up and acted as trustee itself or via SPVs.