Category: Finance

Insolvencies in a post-Brexit world

Effect on financially stressed companies and buying opportunities While the United Kingdom has not yet implemented its withdrawal from the European Union, real-world consequences have already resulted from the June 23rd Brexit referendum.  These consequences flow from the market’s anticipation of Brexit. For UK companies facing liquidity or operational challenges, uncertainty caused by Brexit may...

MAC clauses and Brexit

In a previous post, we touched briefly on the likelihood of a material adverse change (MAC) being called in light of the referendum result, and in this note we discuss the current market position in more depth. There are two types of MACs: a ‘business MAC’ and a ‘market MAC’. Market MACs, often contained in...

Brexit and its impact on finance transactions

In the days following the Brexit vote, the finance team at Dorsey has been asked a number of questions as to how the vote will impact existing finance transactions. The answer is that from a legal perspective the impact will be limited, although the commercial impact will be more significant. We have set out below...