Asset-Based Lending and Insolvency by Jones, Grant; Knight, Andrew;

Table of Contents:

• 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.

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