A Normative Review of The Position of Creditors in Syndication Credit Agreements without A Facility Agent

Abstract

The specificity of syndicated credit compared to ordinary credit is that there are several banks acting as creditors (syndication participants), there is an agent role, and there is only one debtor, and all parties are bound by one main document, namely the syndicated credit agreement. One of the characteristics of syndicated credit is the involvement of a facility agent in the syndicated credit agreement, based, among other things, on the agreement to be the only party who can collect payments and distribute creditor payments. Probematics arise when facility agents do not carry out their obligations and responsibilities properly. The aim of this research is to analyze the legal position and legal remedies of creditors participating in syndicated credit against debtors who are in default. This research was conducted descriptively and analytically using a normative-legal approach. The importance of regulating syndicated credit agreements will have a positive impact on increasing legal certainty and investor confidence in investing in national strategic projects. The agent is also the creditor in the syndicated credit; if the debtor defaults, then the agent is also responsible. The responsibility of the syndicated credit agent outside the syndicated credit participant is only as a liaison between creditors and debtors. The agent's role is limited in accordance with what is written in the agreed-upon agreement document.