Thursday, June 30, 2016

#TBT: Doomed to Invest in Russian Oil?



This post is part of an occasional series highlighting a project finance article or news item from the past. It is often interesting and thought provoking to look back on these items with the perspective of months, years or decades of further experience. 

With this installment, we turn to an article that was first published in the Project Finance Newswire in April 2005.




Doomed to Invest in Russian Oil?


At a major oil and gas industry conference recently, Lukoil president Vagit Alekperov was asked about the prospects for foreign investment in Russia’s petroleum sector. This question followed only five days after a public statement by Russian Natural Resources Minister Yuri Trutnev that auctions to develop certain major Russian oil, gas and mineral fields would only be open “to those companies in which not less than 51% of the share capital belongs to Russian participants.”

Thursday, June 23, 2016

#TBT: When Banks Foreclose



This post is part of an occasional series highlighting a project finance article or news item from the past. It is often interesting and thought provoking to look back on these items with the perspective of months, years or decades of further experience. 

With this installment, we turn to an article that was first published in the Project Finance Newswire in June 2003.




When Banks Foreclose


As more borrowers slip from full performance to covenant default, and then from covenant default to payment default, lenders are reviewing security packages and planning whether and how to exercise their remedies. Some borrowers will contest a bank’s foreclosure on a project; others will willingly hand over the keys. However, in all cases the lender needs to ensure it complies with applicable law and contracts so as to avoid becoming liable to the borrower, subordinated lenders and others as a result of its actions.

Previous articles in the NewsWire have addressed the bankruptcy, tax and other implications of purchasing a distressed project. Many of the same issues apply as well when a lender forecloses on the equity in its borrower. However, the focus of this article is the legal requirements under the Uniform Commercial Code, or “UCC,” for a lender to foreclose successfully on a borrower. The article is based on a senior secured lender’s recent foreclosure on a portfolio of power generation facilities located in the United States.

Thursday, June 9, 2016

#TBT: Tapping Into Capacity on Merchant Transmission Lines and Interties



This post is part of an occasional series highlighting a project finance article or news item from the past. It is often interesting and thought provoking to look back on these items with the perspective of months, years or decades of further experience. 

With this installment, we turn to an article that was published in the Project Finance Newswire in November 2012 and written by Robert Shapiroa partner in Chadbourne's Project Finance Group.




Tapping Into Capacity on Merchant Transmission Lines and Interties


Decisions are expected soon from the Federal Energy Regulatory Commission on access and pricing for capacity on merchant transmission lines and on excess capacity on dedicated gen-tie lines that connect independent power plants to the grid. The commission is sifting through reams of comments.

Thursday, June 2, 2016

#TBT: Project Sales: Feed-In Tariff Insurance



This post is part of an occasional series highlighting a project finance article or news item from the past. It is often interesting and thought provoking to look back on these items with the perspective of months, years or decades of further experience. 

With this installment, we turn to an article that was published in the Project Finance Newswire in November 2012 and written by Kenneth Hansena partner in Chadbourne's Project Finance Group.




Feed-In Tariff Insurance


The Overseas Private Investment Corporation is offering to insure projects against loss of income as a result of a government reducing or abrogating a feed-in tariff.

OPIC is a US government agency that provides financing and political risk insurance to promote US investment in emerging markets.