Partner Feng Jiyong addresses M&A Loan Seminar 2009-03-29

Feng Jiyong, a partner with Zhong Lun Law Firm, delivered a keynote speech on the legal risks involved in the granting of M&A loans at a seminar hosted by the headquarters of Industrial Bank Co., Ltd. on March 27, 2009.

The China Banking Regulatory Commission (CBRC) allowed commercial banks to extend loans financing mergers and acquisitions in its Circular Regarding 'Risk Management Guidelines for M&A Loans of Commercial Banks' Guidelines, on December 6, 2008, to combat the global financial crisis.

An M&A loan is defined in the Guidelines as a loan made by a commercial bank to an acquiring party or its subsidiary to fund payment of the price of an M&A transaction.