For many years we have been providing our clients with top level services both in the process of issuing bonds and in handling their collateral.

We support both issuers and bondholders. In particular, we draw up appropriate documentation, assist in the selection of the optimum collateral and, if necessary, represent the interests of bondholders in pursuing their claims under the bonds.

We provide services to both bond collateral managers and, through a company affiliated with our Firm, we can also perform this task ourselves.

Below you will find a brief description of who the manager is and what is their function in the bond issue process:

• The collateral manager is a professional entity with appropriate expertise and experience in the field of securities, forms of securing claims of bondholders and pursue of their claims under the established collateral,
• The manager may act either as a mortgage manager, a registered pledge manager, or a collateral manager, depending on its choice of the form of collateral securing the bondholders’ claims – in practice, it often performs several or all of these functions simultaneously, if bonds are to be secured in various forms and on various assets at the same time,
• The manager always acts on its own behalf but for the account and in the interest of the bondholders,
• Its functions are independent of both the bond issuer itself and other collateral providers,
• It negotiates with the issuer and other parties the possible forms of collateral of investors’ interests arising from the bonds and the documentation necessary to establish it,
• It verifies the fulfilment status of the obligations entered into by the issuer vis-à-vis the bondholders, including in particular the correctness and timeliness of the establishment of all collaterals,
• It carries out recovery operations against the established collateral,
• It assists bondholders in finding optimum solutions and safeguarding their interests in the event of necessary restructuring of the issuer’s liabilities when the issuer does not have sufficient funds at its disposal to redeem its bonds within the time limits and scope set out in the terms and conditions of issue,
• The manager provides an excellent platform for contacts between the issuer and bondholders, and helps to find appropriate solutions to reconcile the often conflicting expectations of different stakeholder groups and to ensure the highest level of protection of the interests of the bondholders,
• Finally, the manager makes it possible to reduce the costs of claims enforcement from the collateral, as the manager instigates and conducts a single recovery procedure in relation to a given asset of collateral, instead of many such procedures which different bondholders would have to bring individually in order to satisfy their claims against a given collateral asset.

Based on our many years of experience, the Firm supports issuers and bondholders in preparing the appropriate issue documentation, establishing and executing collaterals, conducting necessary debt collection activities and restructuring bond issuers’ liabilities. We have extensive experience in this field, and our team of people with not only theoretical, but above all practical knowledge, is ready at any time to provide the necessary support in this regard.

Therefore, we offer our clients the highest level of support, in particular by:

• Assisting in the identification of the optimum collateral forms for bonds at the initial stage of their issue, before their actual subscription is started and the final group of bondholders is set up, including in the selection, from the perspective of the issuers and individual groups of bondholders, of the best types of collateral and possible paths for their future execution in the event of failure to redeem bonds or perform other issuer’s obligations arising from the terms and conditions of issue,
• Taking over the burden of negotiations and discussions with the issuer and the collateral providers, of determining the terms and conditions for collateral establishment and the related documentation,
• Preparing or amending existing documentation related to the issue of bonds and the establishment of specific collaterals, as well as the establishment of additional collaterals for bonds issued to date, or when making necessary amendments to previously adopted terms and conditions of bond issues,
• Assisting in the preparation of documentation concerning amendments to the terms and conditions of the issue, individual collaterals, restructuring the issuer’s obligations, or stand still,
• Representing the interests of bondholders in disputes with the issuer in respect of payments arising from the bonds, both directly on their behalf by virtue of a power of attorney, and through a manager appointed for this purpose.

Should you have any questions or think if we can help you select the best solution, please do not hesitate to contact our dedicated specialists at MSD.