10 Feb 2021

Who is the creditor in a bond restructuring?


Towards the end of 2020, while businesses were reeling from the challenges of grappling with a global pandemic, the end of the Brexit transition period and LIBOR transition, the Law Commission published a paper analysing the current law underlying intermediated securities – Intermediated securities: who owns your shares?  A Scoping Paper

Given the other rather more obvious priorities during 2020, it may be tempting to see the publication of this paper as being equivalent to Nero fiddling while Rome burned. However, the legal issues and problems which this Law Commission scoping paper explores are likely to become highly relevant when the economic consequences of the events of the Covid-19 global pandemic start to play out.

In this article Charlotte Drake and Jayesh Patel examine the issues raised in the Law Commission scoping paper of relevance to bond trustees, particularly answering the question 'who is the creditor in a bond restructuring?'

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