Loan & Security Enforcement
Borrower default is an increasingly common feature of commercial lending. When it occurs, or is anticipated, it is vital to undertake a thorough review of the enforcement and recovery options available to the lender under the related loan documentation. Understanding these options is paramount to realising the lender’s security and enforcing its wider remedies against borrowers and third parties.
You can depend on our experienced dispute resolution team to take a highly robust and partner involved approach when dealing with security enforcement.
We have considerable experience, both domestic and international, in advising on enforcement matters across many asset classes ranging from ships and aircraft to oilfields and fine art. This experience is complemented by a broad experience of advising on the enforcement of underlying financial arrangements such as those relating to finance leases, receivables financing, trade financing, export financing and commodity financing.
As many projects have multi-tiered finance, presenting the various creditors with differing and potentially conflicting security and default protection options, our experience of inter-creditor issues arising as a result enables us to guide our clients towards the most effective commercial outcomes. With significant experience gained in more than one credit crisis, our security enforcement team draws on practical experience gained from domestic and international institutional insolvencies to guide clients to pragmatic solutions.
In addition to asset based security, corporate and personal guarantees can be a crucial element of the loan support package. We have particular experience in disputes relating to the enforcement of guarantees both in England and abroad (including financial institution unilateral undertakings).
We are delighted to work closely with you to develop your default monitoring and recovery procedures, including supporting your in-house training and helping to implement the most appropriate workout strategies. Where necessary, we draw on tried and tested relationships with other enforcement professionals, such as valuers, receivers, insolvency practitioners and lawyers in other jurisdictions to ensure that the whole exercise is managed smoothly and with maximum efficiency and return.
Representative Loan & Security Enforcement Work
Examples of our team’s loan & security enforcement experience include:
- Advised an Eastern European bank on the defence of a claim taken by the subsidiary of its clearing bank (acting on behalf of noteholders) under an alleged corporate guarantee.
- Advised several secured lenders and receivers in more than 700 commercial/buy-to-let/residential investment portfolio enforcement cases.
- Advised several lenders in recovering possession of commercial buy-to-let, and owner residence properties.
- Advised several lenders in connection with numerous multi-million pound settlements and court damages awards obtained against negligent property valuers.
- Advised several lenders on remediation of defective security and monitoring performance of panel solicitors.