Case Study

Ensuring Adequate Security

The £500 million listed company of our client, the trustees, proposed to change its bankers and borrowing arrangements.

The new arrangements involved the banks taking security over the group's assets. This would, potentially, have detrimentally affected the trustees as they had no security. We advised the trustees in their negotiations with the banks to ensure that they, too, had adequate security in the light of the banks' security. The trustees took a first charge over the shares of the group's most successful company and a second charge over the other assets, and negotiated appropriate triggering events for their security.  We also advised the trustees in relation to the company’s application to The Pensions Regulator for clearance. This was a very intensive exercise carried out in a very tight timescale.