Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 18
LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE
-
N°98
- JULY /
AUG / SEP 2017
PLANNING
CORPORATE
REORGANISATIONS
IN CREDIT AGREEMENTS
18
1. flexibility required to implement
corporate reorganisations
From the borrower's perspective, one of the primary goals
of the negotiation of a credit agreement should be to avoid
that the obligations owed by the borrower and its affiliates to
the lenders have unwanted consequences on the operations
of the borrower and do not allow the implementation of the
borrower's business plan. For that reason much attention is
given to the financial covenants and restrictions on transactions with third parties. The importance of adequately anticipating corporate reorganisations may be overlooked when the
borrower negotiates the credit agreement.1
During the existence of the credit agreement it would not
come as a surprise that new circumstances, such as restructuring a business unit or change in regulatory requirements
or tax laws, push the borrower or certain of its affiliates to
perform a corporate reorganisation which could not have
been anticipated when the credit agreement was signed.
The borrower and its affiliates should be able to perform
these necessary corporate reorganisations without having
to obtain the lenders' consent, except obviously when these
transactions are detrimental to interests of the lenders.
The only examples of corporate reorganisation which may
effectively be detrimental to the rights of the lenders are
the dissolution of a borrower or guarantor and the redomiciliation of a Luxembourg company that has issued shares/
loan pledged for the benefit of the lenders. Luxembourg law
allows borrowers to implement corporate reorganisations on
Luxembourg entities while protecting the lenders' interests.
The easy perfection requirements and the robustness of
security interests over debt and equity interests issued by
Luxembourg companies have made of Luxembourg a place of
choice for the incorporation of financing companies and special purpose vehicles serving as borrowers in large financing
transactions. Luxembourg is also recognised by tax directors
and corporate counsels for its pragmatic company law that
enables timely implementation of sophisticated corporate
structures.
1 - In this note, the terms corporate reorganisations refer to transactions that impact the corporate
structure of a business, without involving third parties. Corporate reorganisations include transfers, issue or
redemption of shares and debt instruments to affiliates, transfer of all or part of their assets to an affiliate
by merger, de-merger or dissolution, change of corporate form, and re-domiciliation of an entity from one
jurisdiction to another.
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017
Table of Contents for the Digital Edition of Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017
COUVERTURE
SOMMAIRE
EDITORIAL
FINANCIAL HIGHLIGHTS Luxembourg Tax News
INTERVIEW with Sue Dean - Manager Director, Head of EMEA Treasury Services, J.P Morgan
FOCUS
How to attract and then retain talented young people to careers as treasurers?
Selecting your bank could be a challenge
Planning corporate reorganisations in credit agreements
FORUM
Repo markets and corporate practice
Cyber attaques en chaîne
Investir dans un contexte de remontée des taux d'intérêt?
Results and analysis of the EY Survey
THE FINANCIAL RISK OBSERVATORY
NEWS
LIFE BEYOND NUMBERS
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - COUVERTURE
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 2
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - SOMMAIRE
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 4
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - EDITORIAL
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - FINANCIAL HIGHLIGHTS Luxembourg Tax News
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 7
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - INTERVIEW with Sue Dean - Manager Director, Head of EMEA Treasury Services, J.P Morgan
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 9
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 10
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 11
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - How to attract and then retain talented young people to careers as treasurers?
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 13
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 14
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 15
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - Selecting your bank could be a challenge
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 17
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - Planning corporate reorganisations in credit agreements
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 19
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 20
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 21
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 22
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - Repo markets and corporate practice
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 24
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 25
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - Cyber attaques en chaîne
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 27
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - Investir dans un contexte de remontée des taux d'intérêt?
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 29
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - Results and analysis of the EY Survey
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 31
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 32
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 33
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 34
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - THE FINANCIAL RISK OBSERVATORY
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 36
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 37
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 38
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - NEWS
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 40
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 41
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 42
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 43
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 44
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 45
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 46
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 47
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 48
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - LIFE BEYOND NUMBERS
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 50
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 51
Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 52
https://www.nxtbook.fr/newpress/atel/99-4T2017
https://www.nxtbook.fr/newpress/atel/98-3T2017
https://www.nxtbook.fr/newpress/atel/97-2T2017
https://www.nxtbook.fr/newpress/atel/96-1T2017
https://www.nxtbook.fr/newpress/atel/95-4T2016
https://www.nxtbook.fr/newpress/atel/94-3T2016
https://www.nxtbook.fr/newpress/atel/93-2T2016
https://www.nxtbook.fr/newpress/atel/le-magazine-du-tresorier/92-1T2016
https://www.nxtbook.fr/newpress/atel/le-magazine-du-tresorier/91-4T2015
https://www.nxtbook.fr/newpress/atel/le-magazine-du-tresorier/90-3T2015
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/89-2T2015
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/88-1T2015
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/87-4T2014
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/86-3T2014
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/85-2T2014
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/84-1T2014
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/83-4T2013
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/82-3T2013
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/81-2T2013
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/80-1T2013
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/79-3T2012
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/78-2T2012
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/77-1T2012
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/76-4T2011
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/75-3T2011
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/74-2T2011
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/73-1T2011
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/72-4T2010
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/71-3T2010
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/70-2T2010
https://www.nxtbook.com/newpress/atel/le_magazine_du_tresorier-69-1T2010
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-68-4T2009
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-67-3T2009
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-66-2T2009
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-65-1T2009
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-63-3T2008
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-64-4T2008
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-62-2T2008
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-61-1T2008
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-60-4T2007
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-59-3T2007
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-58-2T2007
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-57-1T2007
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-56-4T2006
https://www.nxtbookmedia.com