SECURED CROSS-BORDER FINANCING TRANSACTIONS

Trust and parallel debt

Cross-border financing transactions have links with different jurisdictions, and may include both civil law and Anglo-Saxon jurisdictions. Some jurisdictions do and some don’t accept that it is possible to grant security to a security agent (e.g. a special purpose vehicle or a trust) in order to secure money owed to several lenders (syndicated loan / facility).

As far as secured syndicated facilities are concerned, it is not uncommon that one or more lenders change. It is important that despite fluctuations in the group of lenders the security remains valid, without the need to re-establish (or re-register) …
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23
Feb 2014
CATEGORY

Finance

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SEMINAR CURACAO TRUST

Curacao Trust is expected to become a popular alternative to foreign trusts

On 1 January 2012, new legalization entered into force pursuant to which it is now possible to set up a trust, similar to the trust in Anglo-Saxon common law jurisdictions, in Curacao (a civil law jurisdiction).

On 28 August 2012, a seminar was held by Van Doorne (Amsterdam) and Spigt Dutch Caribbean (Curacao), entitled: The Curacao Trust in Practice. Lecturers: Professor Jan de Boer, Maike Bergervoet, Jeroen Starreveld, Jan Willem Schenk, Davina Mansur and Karel Frielink. The event was attended by more than 150 representatives of the financial …
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31
Aug 2012
CATEGORY

Legal

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PARALLEL DEBT IN CURACAO

New legislation

It has become market practice in Curacao, and also in the Netherlands, to create a separate (parallel) obligation, owed by the borrower (or guarantor) to the security agent in its own name, on the terms and in an amount equal to the original (principal) obligations owing by the borrower (or guarantor) to the lenders.

The security rights are then granted to the security agent in its own name to secure the parallel debt. This “parallel debt” structure is usually reflected in the facility agreement and gives the security agent an own and independent right to demand payment by …
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18
Feb 2012
CATEGORY

Finance

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