Financing and securities law
Virtually every company is financed to a lesser or greater extent. Up until recently, businesses were mainly financed by banks. Internal financing is also still a common practice, where shareholders fund the company (in some cases by increasing funds of a current account) or where financing of group companies takes place from a holding company. Crowd funding is a new phenomenon within this field and is already fundamental part of several industries.
Most forms of financing are linked to securities and collateral, such as lien or pledges, mortgages, bonds or improper securities (e.g. positive/negative mortgage covenant). These various types of securities are often structured into corresponding constructions, as is the case with collective deed of pledge constructions, the excess value scheme or the parallel debt construction.
Whichever route the financing takes, however: it is sensible and preferable both for entrepreneurs and financiers to have the collateral and securities in good order from the outset. BVDV offers the expertise to do just that.
Our attorneys work with the subject matter every day and advise borrowers, investors, security interest holders, (large) banks and companies. In addition, BVDV has multiple administrators (trustees) which enables us to assess financing endeavours from that perspective.
BVDV can assist on any matter related to financing and securities.
Establishing the appropriate legal structure at the right time is crucial. The legal domain of financing and securities is very specific and technical, however BVDV can advise and assist regarding the drafting of documentation, such as:
- financing documentation for both internal and external financing, with one or multiple financiers;
- financial structure of companies within a group;
- collateral documentation, such bonds, deeds of pledge and mortgage deeds;
- documentation related to collateral constructions.
Recovery of securities
BVDV’s specialists regularly advise holders of security interests both in the execution or recovery phase, both in and outside insolvency of the debtor/borrower. We advise holders of securities at the recovery of their rights of pledge and mortgage rights and we call on suretyships. We also often advise debtors/borrowers or third parties that have provided the collateral. This extensive experience from all manner of vantage points allows the attorneys of BVDV to guide you towards the best possible outcome.
Should you have any questions, then please get in touch with BVDV.