A perfect storm of rising costs, labour shortages and high interest rates is resulting in an increasing amount of financial distress in the construction sector. What warning signs should lenders look out for? What are the implications under the loan agreement and how can lenders mitigate the risks of insolvent contractors?

Introduction

Towards the end of 2020, while businesses were reeling from the challenges of grappling with a global pandemic, the end of the Brexit transition period and LIBOR transition, the Law Commission published a paper analysing the current law underlying intermediated securities - Intermediated securities: who owns your shares? A Scoping Paper.