Receivables purchase agreement meaning

Credit Suisse Virtuoso Sicav-Sif (in respect of its Sub-Fund, the Credit Suisse (Lux) Supply Chain Finance Fund) and another company v Softbank Group Corp and other companies [2025] EWHC 2631 (Ch) What was the background? This dispute arose from an intricate financing arrangement connecting the Greensill, Katerra and SoftBank groups. Credit Suisse Virtuoso Sicav‑SIF (Credit Suisse) invested, through its Credit Suisse (Lux) Supply Chain Finance Fund (the SCF Subfund), in notes arranged and administered in England by Greensill Capital (UK) Ltd (GCUK) and issued by Hoffman S.à r.l. (Hoffman) under a scheme known as the Fairymead Multi‑Obligor Programme (the Fairymead Note Programme). The intended collateral for that programme comprised certain rights (the Participations) granted under a Participation Agreement dated 19 December 2019 by a special purpose vehicle, Greensill Ltd (GL), to its immediate parent, GCUK. GCUK then assigned those participation rights to Hoffman, which in turn transferred them to Citibank N.A., London Branch, acting as note trustee for the Fairymead Note Programme. The Participations related to receivables sold,...

What is a borrowing base facility? Borrowing base facilities (‘BB Facilities’) are a form of trade finance. They are working capital arrangements that provide short-term liquidity either through advances or by issuing trade instruments, such as letters of credit (see: Letters of credit—overview) or on demand guarantees (see: On demand guarantees/bonds—overview). These facilities are fully secured against current assets—commonly trading receivables, inventory (i.e. goods in storage or in transit), cash and contractual rights—of the borrower and/or other security providers. Consequently, the borrower’s available capital at any given time is directly linked to the value of the assets securing the lender(s). BB Facilities are typically offered to trading companies on a revolving basis to fund the purchase, storage, transport and sale of prescribed commodities. They are often used to finance a pool of traded assets subject to high price volatility. Reflecting this, a standard borrowing base facility agreement will include provisions focused on those assets and their valuation. A typical BB Facility has a tenor of 1–2 years, although...