Droit inc. – Corporate Mergers: What Lenders and Creditors Need to Know

Our recent article, Fusion de sociétés : ce que doivent savoir prêteurs et créanciers, authored by Annalays Castro Ramon and Laurence Brosseau, was republished by Droit inc. (Available in French only).

The article outlines the legal implications of securities such as guarantees, hypothecs, and other warranties granted prior to a corporate merger. It examines whether these securities are automatically transferred to the merged entity, and whether they remain valid and enforceable.

The authors also share the practical steps that should be taken when a lender is notified of a merger, which include verifying the validity and transferability of existing securities, analyzing the ranking of hypothecs based on filing dates and asset origin, updating RDPRM registrations if the company’s name changes, and validating guarantees to ensure they remain enforceable.

Read the full article on Droit inc.