Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
LIBOR and Bankruptcy in the Current Market
Distressed companies and those in bankruptcy nearly always require some amount of loans to fund their recovery, exit from bankruptcy, or sale. What happens when those loans are not available, too expensive, or too risky in the eyes of the capital market? Combine that with volatility in The London Interbank Offer Rate, 'LIBOR,' the rate at which money is lent to other banks, and the terms, in particular, interest rates, that are offered to these distressed borrowers, are constantly in change. While LIBOR is recognized as the foundation of pricing of products internationally, recent issues have arisen, causing additional erosion of the confidence in the financing market. The integrity of LIBOR has been addressed in recent months, specifically pointing to certain financial institutions' possible misrepresentation of borrowing costs as a method of minimizing their respective losses during the crisis in the financial markets. It is unclear if the capital markets consider these issues a 'crisis' in terms of the LIBOR benchmark calculation, or if the identified problems are considered to be resolved.
Concurrent with these concerns is the observation that use of the LIBOR system may not be as desirable as it once was. Regardless, the system still is one that is distinct and separate from the system used by The Federal Reserve Board to set interest rates.
LIBOR and Bankruptcies
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
The Anti-Assignment Override Provisions
UCC Sections 9406(d) and 9408(a) are one of the most powerful, yet least understood, sections of the Uniform Commercial Code. On their face, they appear to override anti-assignment provisions in agreements that would limit the grant of a security interest. But do these sections really work?