CEU Electronic Theses and Dissertations, 2024
| Author | Kravchuk, Alina |
|---|---|
| Title | Lender`s Step-in Right Mechanism in Project Financing |
| Summary | This thesis examines the step-in rights of the lender in the context of project finance transactions. Project finance activities are associated with numerous financial risks borne by the lender. The sponsor's failure to complete the project would likely result in a default on the loan due to the inadequacy of the available security package. Hence, it is crucial for the lender to be able to exercise step-in rights—the right to intervene in the project to rectify the problems and prevent the termination of the project agreements. The thesis undertakes a fundamental approach to examining the main features of the 'step-in' concept. In light of that, it first analyzes the levels of the exercise of step-in rights. Second, it discusses the tools available in different jurisdictions that enable the lender to intervene, thereby providing the building blocks for understanding the possible applications and objectives behind 'step-in'. Third, the focus of the thesis shifts to scrutinising the various contractual arrangements into which step-in is usually incorporated. Furthermore, it situates the ability to step in within the public-private context, where such necessity usually arises for the lender. Thus, without focusing on a specific jurisdiction, the thesis aims to explore the concept of step-in rights at a theoretical level, examining different aspects relevant to its exercise. The thesis delves into both the theoretical foundations of step-in rights and the established practices within the industry. Given the international nature of project finance activities, it also examines various solutions and challenges encountered in various jurisdictions. |
| Supervisor | Tajti, Tibor |
| Department | Legal Studies LLM |
| Full text | https://www.etd.ceu.edu/2024/kravchuk_alina.pdf |
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