As safe as houses? Insolvency in the hotels sector

As safe as houses? Insolvency in the hotels sector

The latest edition of Corporate Rescue and Recovery (April 2019) looks at insolvency in the hotels sector. The key points from the article written by Eva Holden from Bryan Cave Leighton Paisner are as follows:

  •  It is common for the ownership and operation of a hotel to be separated and this should be reflected in a lender’s security package.
  • In the event of financial distress, a review of the hotel holding and operating structure and security package is essential to identify pre-enforcement and enforcement options available to the lender.
  • The practicalities of enforcement need to be considered alongside the legal options, including the position in relation to existing licences and short term funding requirements, as this will inform the strategy for how the asset will be developed/ traded/marketed and ultimately value realised.

 Click here to read the full article.

 

 

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About the author:

Neeta started her legal career at Allen & Overy in 2008 in the midst of the global financial crisis and the collapse of Lehmans where she gained most of her paralegal experience.

Neeta also did a short stint in litigation at the Revenue and Customs Prosecutions Office in 2006. Neeta graduated with a 2:1 honours degree from University of London, Queen Mary College and went on to obtain a distinction from the College of Law in the Legal Practice. She has been working at Lexis Nexis since April 2013.