TY - JOUR
T1 - Clarity and Confusion in Leveraged Finance Part 1
T2 - Ambiguity in Leveraged Finance Contracts
AU - Clark, Trevor
PY - 2025
Y1 - 2025
N2 - Drawing on the author’s empirical research, this two-part article zooms in on the significant ambiguity in the language of European leveraged finance contracts, which generates confusion for the parties as to the meaning of key terms. This type of ambiguity also has negative implications for markets. Examples considered in Part 1 of this article include the ‘J. Crew trap door’, ambiguous permitted indebtedness covenants, and spurious and uncertain add backs to financial covenants. Part 2, to be published next month, explores how leveraged finance lawyers working in large international law firms in London have played a key role as engineers of this ambiguity.
AB - Drawing on the author’s empirical research, this two-part article zooms in on the significant ambiguity in the language of European leveraged finance contracts, which generates confusion for the parties as to the meaning of key terms. This type of ambiguity also has negative implications for markets. Examples considered in Part 1 of this article include the ‘J. Crew trap door’, ambiguous permitted indebtedness covenants, and spurious and uncertain add backs to financial covenants. Part 2, to be published next month, explores how leveraged finance lawyers working in large international law firms in London have played a key role as engineers of this ambiguity.
UR - https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.jibfl.co.uk%2Farticles%2Fclarity-versus-confusion-in-leveraged-finance-part-1&data=05%7C02%7Ctrevor.clark%40kcl.ac.uk%7C42d655bca2dd4927d04508ddbcc2a83d%7C8370cf1416f34c16b83c724071654356%7C0%7C0%7C638874266431121065%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=pOQAq1R%2FzOW4oAQ%2B36UdjKCz0C6SvN1YJqhhoEvGg18%3D&reserved=0
M3 - Article
SN - 0269-2694
JO - BUTTERWORTHS JOURNAL OF INTERNATIONAL BANKING AND FINANCIAL LAW
JF - BUTTERWORTHS JOURNAL OF INTERNATIONAL BANKING AND FINANCIAL LAW
ER -