Following the boom years of securitisation origination and the well documented post-Lehman troubles securitisation transactions are now coming to the end of their life cycles as assets default, are re-financed or bought back by originators. However, there are typically numerous legal and accounting costs – and possibly taxes – associated with unwinding a securitisation such as releasing security, terminating the legal agreements and liquidating the issuer (and any related entities such as the SPV holding companies and SPV holders of post-enforcement call options). The fact that, usually, little thought was given at the outset of a transaction as to how such costs should be allocated, begs the question “who pays”?
Continue Reading Winding up securitisation issuers: who pays?