Debt servicing meaning

This checklist highlights the principal tax considerations when handling distressed corporate debt, addressing in turn: acquisitions of non-performing loans debt restructurings (ie waivers, debt/equity swaps and renegotiations) enforcement of debts For fuller analysis of the points signposted here, see Practice Notes: Tax and distressed debt—acquisitions of non-performing loans Tax and distressed debt—debt restructurings Tax and distressed debt—enforcement actions available to creditors Acquisitions of non-performing loans This part summarises the tax considerations when a buyer takes on existing UK debt at a discount to face value: Where should the purchaser be located? will interest paid by the borrower to the purchaser be subject to withholding tax? if the purchaser is non-UK resident, can relief be obtained under a double tax treaty? to what extent will amounts received from borrowers be chargeable on the purchaser? How will the debt...

Loan market and developments Kindly give a short synopsis of the current position of the loan markets in your jurisdiction and any material recent shifts. Ireland’s retail banking landscape now centres on three principal institutions—AIB, Bank of Ireland and Permanent TSB—following the departures of KBC and Ulster Bank in 2022. Alongside them, various non-bank lenders are active in the Irish arena. Some hold Central Bank of Ireland (CBI) authorisation as retail credit firms, as they provide credit to individuals; others are authorised by the CBI as credit servicing firms. For the Irish credit servicing regime, in-scope credit agreements include those with individuals (with limited exceptions) and, where a loan was originated by a regulated financial services provider (RFSP) and subsequently sold, lending to a small or medium-sized enterprise. In 2024, domestic banks increased overall lending to Irish corporates—most notably within real estate and primary industries—while SME borrowing rates eased, after a spell of rises driven by European Central Bank (ECB) rate hikes. Please furnish a brief outline of forthcoming...

Senior lenders typically insist not only on superior security over junior creditors, but also on the juniors being subordinated to them—ie the order of claims against the borrower is altered so junior lenders accept their debts will not be settled until amounts due to the seniors have been discharged. It is likewise used to push any intra-group loan repayments behind the servicing of liabilities owed to third-party financiers. As a rule, creditors nearest the principal asset-holding entities (called ‘Opcos’ here, though depending on the structure this might instead be a ‘Propco’) wield the greatest influence over any restructuring/insolvency, so their ultimate dividend tends to be larger. The three main types of subordination are: contractual subordination — both senior and junior finance provided to the same borrower structural subordination — seniors fund the Opcos, while juniors lend at Holdcos level equitable subordination — shareholder loans treated as equity; seen in the US and parts of Europe, but not recognised in the UK ...

This Practice Note sets out an introduction to, and overview of, CREST, covering: what CREST is and the idea of uncertificated securities the legal framework the advantages of CREST and what companies must do to allow their securities to be held in CREST how uncertificated securities are held and transferred within CREST, and a brief introduction to the concept of depository interests It does not address how various shareholder and corporate actions are undertaken in CREST, nor practical guidance on the CREST processes around shareholder voting on resolutions, alterations of share capital, dividends, open offers, rights issues and takeovers. What is CREST? CREST is a central securities depository, run by Euroclear UK & International Limited (Euroclear), for the holding and transfer of dematerialised securities. It supplies core infrastructure for the electronic holding, transfer and related servicing of (or dematerialised settlement for) equities, debt securities and other financial instruments admitted to the system (participating securities). In broad...