The New York Commercial Financing Disclosure Law (“CFDL”) imposes consumer-style disclosure requirements for a variety of commercial financing transactions, including loans, sales-based financing, including merchant cash advances, and factoring transactions. The original bill, SB 5470, was signed into law in
Asset Finance in Brief
Asset Finance in Brief, published by Reed Smith LLP, focuses on legal issues related to asset finance transactions. The blog covers topics such as commercial financing disclosure laws, regulatory changes affecting finance transactions, transition from LIBOR to alternative reference rates, distressed asset acquisitions, liquidity management in transportation sectors, and tax concessions for ship leasing. It addresses practical considerations for lenders, borrowers, investors, and industry participants in sectors including shipping, aviation, and transportation. The blog also discusses insolvency implications, transaction structuring, and compliance with evolving financial regulations relevant to asset finance.
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Preparing for the transition away from LIBOR: the options for ship finance lenders and borrowers
The transition away from LIBOR is imminent and lenders and borrowers should be thinking about how this will impact on both new and existing finance transactions.
As USD is the most prevalent LIBOR currency used in shipping transactions, this article…
Distressed Assets – The opportunity for a bargain but pitfalls abound
Purchasing or investing in distressed businesses gives rise to complexities and considerations that are not typically present in ‘good book’ deals. Considerations for buyers and investors in such circumstances include the need to pay careful attention to structuring the transaction…
Staying afloat: managing liquidity in the COVID-19 fallout
By Rohan Soni & Deena Smith
Presumably everyone is tired of hearing about COVID-19. However, there is no doubt that its all-encompassing impact on the world’s economic activity has adversely affected most industries, including transportation, and has ultimately affected companies’ balance sheets. IATA reported that in…
New regime for ship leasing tax concessions in Hong Kong
On June 19, 2020, the long-awaited Inland Revenue (Amendment) (Ship Leasing Tax Concessions) Ordinance 2020 (the Ordinance), which introduces concessionary tax regimes for qualifying ship lessors and ship leasing managers, finally came into effect.
The Ordinance is a follow-up of…
Chattel paper in the electronic age
The world is going digital and equipment lease transactions are no exception. Today, business is increasingly conducted online, and the necessity to do so has only been amplified with the COVID-19 health crisis. Luckily, because the movement of transactions into…
Harder than it looks: the impact of COVID-19 on luxury transportation
The COVID-19 pandemic has taken the world largely by surprise, especially as regards the speed with which countries have closed their borders, restricted travel and seen a sharp drop in economic activity. The outbreak has had a significant negative impact…
JOL-ted into action: how leasing is changing asset finance
Background
Leasing has been a staple of the aviation industry for more than 40 years, and has become increasingly attractive to the shipping industry over the last five years, particularly given the scarcity of traditional bank finance.
Until 2017, Chinese…
Ship Sale and Leaseback Transactions
By Zoe Jackson
The shipping industry has experienced a very turbulent and somewhat negative decade since the 2008 financial crisis. The banking industry is a lot more regulated post-recession era and risk management is paramount. Many of the traditional shipping banks have either…
Decarbonisation: new opportunities for financiers
If the shipping industry were a country on its own, it would be the sixth largest greenhouse gas emitter worldwide. Economic and regulatory pressures, including the much-discussed IMO 2020, have been building up and there is no question that it…