Our lender clients are increasingly looking for more detailed advice on the enforcement of the offshore aspects of their security package at the outset of a transaction. We are routinely being asked for step-by-step enforcement plans, including details of specific service providers in Guernsey who are able to assist a security agent in executing such plans (in the absence of the concept of receivership). There is an increased focus on the exact mechanics of enforcement in both Guernsey and Jersey, often in the context of a change of security agent and the transfer of distressed debt portfolios. Now that certain UK moratoria are over, we expect that the forbearance of the last two years will come to an end. Where there are distressed debtors in a portfolio they will be treated as such, and we anticipate a level of security enforcement within non-performing businesses.
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