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Contract Review

  • Review all LIBOR related contracts, classify those contracts into one of a pre-determined list of categories and offer a roadmap for solutions for each contract based on classification. The roadmap would indicate whether a generic or tailored solution is needed.
  • With the assistance of our international colleagues, replicate this exercise for all other relevant IBORs (eg, EURIBOR), noting that clients with cross-border business will need to address these issues across all relevant inter-bank offered rates that will be replaced by the end of 2021

Audit Preparation

Provide an audit report regarding the client’s readiness for LIBOR replacement, including:

  • an assessment of the client’s LIBOR related contracts, broken down by transaction type and business unit
  • an outline of the steps the client has taken to prepare for LIBOR replacement
  • an action plan with a timeline for remaining steps
  • risk factors (including financial, regulatory, litigation, basis, counterparty non-compliance and other risks)
  • potential mitigants to those risk factors and recommendations to reduce these risks

Pre-litigation Counseling

DLA Piper provides pre-litigation consulting services, including:

  • compliance training regarding litigation risk and protecting the institution
  • how to handle contracts that cannot be amended or replaced
  • analysis of close-out, unilateral amendment and acceleration rights, and rights as calculation agent or valuation agent, in respect of contracts that cannot be amended or replaced
  • strategies for dealing with non-compliant counterparties disclaimers to add to new contracts and other methods of providing disclaimers and disclosure to existing customers with LIBOR exposure, including analysis of the effectiveness of those disclaimers in potential litigation
  • actions that could be taken to mitigate damages or limit liability

Solution Implementation

  • Prepare and provide form documentation for specific asset classes for any necessary contract amendments and implement those amendments directly with the client and its counterparties/customers, including doing so by electronic means if desired (i.e. electronic signatures)
  • Prepare and  provide bespoke documentation and negotiate it to conclusion with the client and its counterparties/customers
  • Work with internal business groups to conduct outreach to clients