LMA amendments solve Lehman

Elizabeth Fournier | NEWS ANALYSIS - July 02, 2009

Long-awaited documentation released by the Loan Market Association (LMA) has succeeded in filling some of the gaps that emerged when Lehman Brothers and several Icelandic banks collapsed.

But lawyers drafting new agreements should not assume that the new provisions are appropriate to every deal, particularly when it come to treating lenders equally. "It's not a simple case of plug in the words and off you go," said Susan Whitehead, a senior consultant in Lovells' banking group.

“One example is would it really be appropriate to include an automatic term-out clause when that can result in the lenders no longer being treated equally with drawings on a pro-rata basis?”The automatic-turnout clause allows an insolvent lender’s revolving credit...

The rest of this article is available to subscribers only. Subscribe today for full access to this article.

Alternatively take a free trial, giving you access for 48 hours*.

If you are already a subscriber, please log in below to access the rest of this article.

*some articles may be excluded.

Already have an account?

Resources

About IFLR

IFLR resources

LMA amendments solve Lehman

Read more:

Already have an account?

Related articles

Resources

Web seminars

Latest Issue

Most read articles

Latest supplements

About IFLR

IFLR resources

My IFLR

Recommended links

Related articles

Debt repurchases: Easier with the LMA

Similar objectives, subtle differences

First European private equity event launches

''Chindia'' takes centre stage at IFLR's Asia Forum

Speakers confirmed for private equity event

HK regulator questions IPO diligence