Financial transactions lender's liability

Advising financial institutions and insolvency practitioners on how to minimise the risks of exposure to environmental liabilities and the value of their security.

As more emphasis is placed on finding responsible parties to remedy environmental damage, financial organisations are becoming increasingly concerned about their potential liabilities in providing funds and taking security over property.

We have a wealth of experience in advising financial clients and insolvency practitioners on protecting themselves and their investments against environmental liabilities. We are also asked increasingly to advise on non-legal policy frameworks with which major finance houses are expected to comply, eg the Equator Principles and World Bank guidelines for providing finance in developing countries.

We advise regularly on:

• The potential for environmental liabilities to affect lenders and borrowers
• Appropriate funding structures
• Representations, warranties and indemnities
• Implications of taking possession of real property and associated insolvency issues
• Lender policies for devising and managing recovery strategies
• Appropriate environmental due diligence.

We have particular expertise in advising lenders in specialised financial transactions where environmental issues arise such as:

• Project finance or PFI/PPP transactions such as waste-to-energy projects, hospitals and transport infrastructure where regulatory frameworks can be complex and central to the project proceeding
• Privatisations of electricity, nuclear, water, coal and rail industries
• Securitisations and bond issues.
  
  

For more information on how we can help, contact a member of the Environment Group.