Debtor-Creditor Relationships

Photo of Gregory Grennady PlotkoPhoto of James J. OhligPhoto of John A. Clark

Participation agreements, in the form promulgated by The Loan Syndications and Trading Association, Inc. (LSTA), are widely regarded as dependable vehicles for conveying loan ownership interests from a lender to a participant as “true sales” in the United States.  But what if the underlying credit agreement describes the participation as a financing relationship between a