Lender’s liability in case of borrower’s insolvency

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Recent case law from the Supreme Court demonstrates once again that lenders can be held liable by creditors of an insolvent borrower under certain conditions.

In particular, a lender may be held liable where it has significant influence over the borrower´s management. However, only a few cases have met the necessary level of influence. The case discussed below shows that total disregard of this risk can have severe consequences for lenders.

Alexander Isola, ILO Newsletter, November 25, 2016


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Dr. Alexander Isola
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