Voidable/reviewable transactions

Germany has notoriously broad voidability laws. As a rule of thumb, any payment by a third party has high voidability risks if the third party has no obligation to make the payment under the contract. Such payments qualify as incongruent (3 months hardening period, very few further requirements) and often qualify as gratuitous (4 years hardening period, without any further requirements). A recent decision of the German High Court has stirred hope that the Court may give some leeway to cash pool payments by group companies. However, on a closer look at the decision, it becomes clear that the boundaries for an exemption from voidability were set very narrowly.

Comment on the German High Court decision dated 12. September 2019 (file no.: IX ZR 16/18) by Christine Borries, LL.M. (Sydney) and Dr. Markus Huber, lawyers of the German Hogan Lovells insolvency and restructuring practice.
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Rather surprisingly on 16 February 2017 the German Parliament finally executed a long discussed reform of the German insolvency code aimed to soften the law on voidable transactions. The law now needs to pass the federal council (Bundesrat) before it can become effective.  Continue reading

Most Mexican securitizations involve the use of a trust as the special-purpose vehicle. This has tax advantages because the sale of the asset may be tax exempt and, at the same time, it is generally considered a true sale.  Additionally collateral trusts (fideicomisos de garantía) or payment-source trusts (fideicomisos de fuente de