By Amanda Montano, Associate and Andrew Thompson, Trainee

At the latest Trade & Export Finance webinar, partners Geoffrey Wynne and Sam Fowler-Holmes delved into the topic of receivables financing. Given the manner in which COVID-19 has impacted businesses’ cash flow and supply chains, financing receivables has, perhaps unsurprisingly, accelerated over the past year. With the recent fallout of Greensill, the ideal opportunity arose to discuss the nature of receivables finance, the challenges facing the industry and key factors in mitigating risks and achieving the benefits the industry has to offer.

The end of March has welcomed Spring, and this year it marks a new era for the financial markets, particularly for loans and financial products which would usually use Sterling LIBOR as the benchmark for calculation of interest, default interest or to calculate a discount rate. After 31 March 2021, alternative rates or benchmarks should be used in place of Sterling LIBOR.

By Amanda Montano and Humzah Irfan

Jacqueline Cook, Senior Knowledge Development Lawyer at Sullivan's London office, broke ground on our first Trade & Export Finance Webinar of 2021, held on 21 January, and the EU-UK Trade and Cooperation Agreement (the TCA) for the post-Brexit position was top of the agenda. London's Senior Partner, Geoffrey Wynne, followed with thoughts on what the trade finance industry should be looking out for in 2021.

In a flurry of last-minute negotiations, the EU and the UK agreed on the form of the Trade and Cooperation Agreement between the EU, European Atomic Energy Community and the UK on 24 December 2020 ("TCA") to bring about the "Brexit deal" on their future relationship. As timing was extremely tight, with the end of the Brexit transition period looming a week later¹, ambassadors for each EU member state approved the TCA in principle, so it passed through EU Parliament unopposed. It was then signed by Ursula von der Leyen, President of the European Commission for the EU.

By trainee Humzah Irfan at Sullivan in London

At Sullivan's monthly seminar in December, Mark Norris, partner at Sullivan’s London office, reflected on a roller-coaster year in 2020, breaking down key trade finance related events and picking up on common themes with a view on how issues from 2020 might feed into 2021.

Written by Amanda Montano and Szonja Kolbenheyer

By trainee Humzah Irfan at Sullivan in London

Sam Fowler-Holmes restarted Sullivan's Breakfast Seminar, this time at lunchtime! On the day England moved into a second national lockdown due to the COVID-19 pandemic, Sam provided an overview of the impact of COVID-19 on the trade finance sector. The presentation discussed issues from the progress in digitalisation in the trade finance market to Brexit and LIBOR.

This article is the second in a series looking at how to address some of the issues affecting trade finance documentation and transactions in the current climate.

The first article in this series analysed some of the issues that parties to a trade finance transaction should be aware of when considering amendments and waivers to their written contracts. This article continues to explore the issues that arise in connection with amendments and waivers, focusing first on the common question of how best to document an agreed amendment or waiver to an English law contract, and then considering how amendments or waivers to one contract can potentially (and possibly detrimentally) impact a party’s rights under a connected contract, and finally how to take steps to avoid or mitigate such impact.

How should I document an amendment or waiver in a trade finance transaction?

The starting point is always to consider any requirements set out in the relevant contract. Even if a contract is silent as to how it should be amended or waived, it is advisable to make any amendment or waiver in writing as, if well drafted, doing so helps to mitigate any later dispute about the intended scope or effect of the amendment or waiver.

Written by: Geoffrey Wynne, Alexandra Shipulina and Szonja Kolbenheyer (trainee solicitor)

The Act

This alert is the first in a series addressing the issues affecting trade finance documentation and transactions in the current climate.