Appropriation – the powerful lenders’ remedy few have heard of
In leveraged finance structures (and often in other commercial lending situations) it is common for a lender to take share charges over the shares of a group. If the financial situation of the group deteriorates to the extent the lender decides to enforce the share charge after an event of default, a sales process is the most likely self-help remedy. This often involves the appointment of a receiver, which will market the shares and sell them on behalf of the lenders.
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