| Abstract [eng] |
Syndicated loan is a financial contract, which is very common in international market and is used to finance large loans in amounts of several hundred millions and a significant proportion run into billions. The essence of syndication is that two or more banks agree to make loans to a borrower on common terms governed by a single agreement between all parties. In Lithuania syndicated loan agreements are not very common and there are no special laws regarding this kind of contracts. Considering this situation syndicated loan contracts are regulated by the common rules established in Lithuanian Civil Code, lawyers preparing the syndicated loan agreements also use the recommendations provided by The Loan Market Association. The Association has recommended forms of syndicated facility agreements and there are user guides from the point of view of both lenders and borrowers. The purpose of this paper is to analyze substantial peculiarities of syndicated loan agreements, main problems that parties to the contract are facing while in the stages of organizing the syndicate and later making this syndicated loan mechanism work. Main problems discussed in this paper are bank manager liability and status attracting creditors to the syndicate and framing it with the syndicated loan agreement. This paper also discusses clawback clause, pro rata sharing and other most common theoretical and practical problems concluding the syndicated loan agreement and bringing it to life. |
