A.Anthony Corporate offers Deferral Credit
Enhancement by way of the Insolvency Bond. The product has been developed
in conjunction with A+ Investment Graded* UK Underwriters and principally
offers the vendor insolvency protection on funds deferred from the Newco. This
is especially useful when the consideration cannot be met due to the VC
not wanting to plug the equity gap or the Vendor wishes to taper tax
relief. The bond
protects the vendor in respect of the payments due under the terms of the
Deferred Consideration schedule. If these are not paid to the Vendor by
the Newco by reason of the Insolvency of the Newco then the underwriters
will indemnify the Vendor the total "net ascertainable loss" up
to a maximum of the Bond limit. The;
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Vendor can defer
receipt of payments to take advantage of tapered tax relief
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Newco management can
extend the consideration payment
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Newco can avoid bank
guarantees and avoid crystalising cash
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Bond achieves 100%
protection of a deferred consideration figure
The deferral situations to
which the product applies vary within the range of £150,000 to £20
million
Please contact names below
for specific quotation details.
Contact:
Anselm Gilby
Gareth Glynne-Jones
Fiona Wright
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Address:
Rosehill House, Lydiate
Merseyside L31 4JF |
Tel: 0151 526 4008
Fax:0151 526 1673
e-mail:enquiries@aaa-mergers.co.uk
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