Facility fee meaning

Restructuring & Insolvency weekly highlights—26 September 2024 In this issue: Key R&I law developments Corporate insolvency processes Personal insolvency Financial institutions International restructuring and insolvency Daily and weekly news alerts Key dates for R&I professionals New content Key R&I law developments The Insolvency Service has released its monthly statistics for August 2024 on corporate and personal insolvencies in England and Wales. There were 1,953 company insolvencies—9% fewer than July 2024 and 15% down on August 2023. Individual insolvencies stood at 10,000, a 5% fall from July 2024 but 16% higher than August 2023. See: LNB News 20/09/2024 28. Corporate insolvency processes The Insolvency Proceedings (Fees) (Amendment) Order 2024, SI 2024/963, updates the Insolvency Proceedings (Fees) Order 2016, SI 2016/692. Taking effect on 9 January 2025, it will, among other changes, increase: (i) the official receiver’s administration fee payable to the Secretary of State; and (ii) the official receiver’s general fee, payable to the...

The Executors of KDL Beresford v HMRC [2024] UKFTT 952 (TC) The deceased, B, held shares in F Ltd, which in turn wholly owned N Ltd. N Ltd owned a six‑storey office building situated in London. Two storeys were let on commercial leases, while the remaining four were run as serviced offices, administered for the company by an agent. At any given time, approximately 42 individual offices in total were in occupation, usually by between seven and 20 separate firms. Clients entered into 12‑month office agreements including a break clause and were required to pay two separate fees. The first, the 'facility fee', related to the office space and a set of standard services, such as utilities, cleaning, telephone answering and reception services, together with access to kitchens and sanitary facilities...

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Waste Electrical and Electronic Equipment Regulations 2013 (SI 2013/3113), as amended, implement Directive 2012/19/EU (recast WEEE Directive) and replace the Waste Electrical and Electronic Equipment Regulations 2006 (SI 2006/3289). Rooted in the principle of ‘extended producer responsibility’, they place obligations on producers to manage the environmental impacts of their products, particularly at the ‘end of their life’ when they become waste. Producer compliance schemes Under WEEE 2013, reg 14, any producer placing five tonnes or more of EEE on the UK market in a year must join a Producer Compliance Scheme (PCS). A PCS supports compliance and arranges for collected WEEE to be sent to an Approved Authorised Treatment Facility (AATF) or an Approved Exporter (AE) for treatment in the UK or overseas. For further details on producers’ duties, see Practice Note: WEEE—producer obligations. Applications for approval A PCS must be approved by the Environment Agency (EA) for applicants based in England, and by Natural Resources Wales (NRW) for applicants based in Wales...

What is a 'market flex' provision? A market flex clause grants arrangers and underwriters limited leeway to adjust financing terms after the relevant facility agreement has been signed. As they arrange and underwrite the transaction, these provisions help them distribute the debt to the market and cut their exposure to the borrower to an agreed minimum hold level. Typical wording allows the arrangers or underwriters to alter certain key aspects of the financing to make it more appealing to potential lenders, particularly in more difficult or volatile market conditions. It is usually addressed in the mandate letter or the arrangement/underwriting fee letter. For more information on mandate letters, see Practice Note: Mandate letters. For more on the role of arrangers and underwriters in loan transactions, see Practice Note: The finance parties. When can market flex be used? These provisions can be used by the arrangers or underwriters before or after the facility documentation is signed. What can be flexed?...

This glossary sets out numerous expressions frequently encountered in the restructuring arena. Words appearing in the definitions in bold are explained in other entries in this glossary. For further banking terminology, see the principal Banking & Finance Glossary. Restructuring glossary—A Acceleration: Acceleration means the agent, acting on directions from the majority lenders after an event of default, takes formal action, for example calling for early repayment of the facility. Ad-hoc committee: A temporary creditors’ group (often contrasted with a formal committee) that lacks any entitlement to official recognition. Administration: A process under the IA 1986 in which a financially distressed company is operated by an administrator as a going concern before longer-term outcomes, such as break-up and sale, are pursued. Administrator: An Insolvency Practitioner named by the court, a Qualifying floating charge holder, the directors or the company, to take control and fulfil one of the purposes in IA 1986, Sch B1. Administrative receivership: Arises when a company breaches the terms of...

Fee Letter [ To appear on the lender’s headed paper ] [ insert date ] To: [ insert full name and address of borrower ] Dear [ insert full name of borrower ] Reference is made to the facility agreement dated [ insert date of facility agreement ], entered into by [ insert full name of borrower ] (the Borrower) and [ insert full name of lender ] (the Lender), as it may from time to time be amended, novated, supplemented, restated or replaced in accordance with its terms (the Facility Agreement). This constitutes the Fee Letter which sets out the upfront fee due from the Borrower to the Lender, as described in clause [ 9.1 ] (Upfront fee) of the Facility Agreement...

To be printed on the headed paper of the arranger [ s ] [ insert date ] To: [ insert full name and address of borrower ] Dear [ insert full name of borrower ] 1 We refer to the facilities agreement dated [ insert date of facilities agreement ] among [ insert full name of the borrower ] as the Borrower, [ the subsidiaries of the Borrower listed in [ insert Schedule containing borrowers' details ] as Original Borrowers ], [ the subsidiaries of the Borrower listed in [ insert Schedule containing guarantors' details ] as Original Guarantors ], the financial institutions set out in [ insert Schedule containing lenders’ details ] as Original Lenders, [ insert full name of arranger [ s ] ] as the Arranger, and [ insert full name of facility agent ] as the Agent, ...

[ To be printed on the headed paper of the agent/security agent ] [ insert date ] To: [ insert full name and address of [ parent ] ] Dear [ insert full name of parent ] 1 We refer to the facilities agreement dated [ insert date of facility agreement ] made between: [ insert full name of the parent ] in its capacity as the Parent; the Parent’s subsidiaries named in [ insert Schedule containing borrowers' details ] as the Original Borrowers; the Parent’s subsidiaries identified in [ insert Schedule containing guarantors' details ] as the Original Guarantors; the financial institutions set out in [ insert Schedule containing lenders details ] as the Original Lenders; [ insert full name of arranger [ s ] ] as the Arranger; [ insert full name of facility agent ] as the Agent; [ insert full name of security agent [ s ] ] as the Security Agent; ...

What is the waste duty of care? Under section 34(1) of the Environmental Protection Act 1990 (EPA 1990), businesses are required to handle controlled waste safely and dispose of it lawfully. This obligation is called the waste duty of care. Controlled waste covers household, industrial and commercial waste, and anything of that kind. In brief, the duty means waste holders must: ensure their waste goes to a suitably permitted facility ensure anyone managing their waste complies with permit conditions prevent the escape of waste transfer waste only to a registered carrier or authorised permit holder provide a written description of the waste when it is transferred Failure to meet these duties is an offence under EPA 1990, s 34(6), and is punishable: on summary conviction, by a fine not exceeding the statutory maximum on conviction on indictment, by a fine Who does the waste duty of care apply to?...