Law on Syndicated Loans Amended
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Key takeaways:
- On 21 June 2021, the majority of the amendments to the regulations on syndicated loans will come into force.
- The amendments are designed to raise the appeal of syndicated facility agreements governed by Russian law to potential lenders, including by developing the secondary market for syndicated loans and by strengthening the protection of lender rights in the event of bankruptcy or other adverse events on the borrower’s side.
- The amendments, among other things, simplify the procedure for substituting lenders under a syndicated facility agreement and the registration of pledges securing the claims of the syndicate members and introduce regulations on agreements relating to the funding of participation in loans and on specifics of the participation of lenders in the bankruptcy proceedings in respect of the borrower under a syndicated facility agreement.