Highlights
Counterparties should continue to follow their current contractual obligations
Silicon Valley Bank’s parent company bankruptcy filing will not impact contractual rights
Counterparties should be vigilant and consider alternate financing arrangements
USA, Banking, Corporate Finance/M&A, Insolvency & Restructuring, Barnes & Thornburg LLP, Venture capital, Federal Deposit Insurance Corporation (USA), Silicon Valley Bank
Introduction
Fixed and floating charges – why are they important?
They give a lender a higher position in the queue for the net proceeds of a borrower’s assets in the event of a borrower’s insolvency.