Business letter

Question: Write a letter on Bell Retail plc. Answer: Dear Sir, From your email I have come to know that the Bell Retail Plc, which is a holding company, planning for expansion of their business substantially. The company is a holding company of a group of online retailing companies. For this specific purpose the directors of the Bell have decided to take a term loan of 10,000,000 from the Syndicate bank. In order to processing the loan the Wapping Bank plc is performing as an agent and the Wapping bank is arranging the loan for the Bell holding companyZ Bodie R Merton, Finance, in , Upper Saddle River, NJ, Prentice Hall, 2000.. The syndicate bank, apart from the term loan of 10,000,000 has agreed to provide a revolving credit facility of 3,000,000, and all the members of the Bell holding groups can avail the credit facility for general business purpose. Besides this, I also knew form your email that the term loan and revolving credit agreement will be documented in a single facilities agreement based on the LMA standard form documentationE Ferr an, Principles of corporate finance law, in , New York, Oxford University Press, 2008.. Each member of the Group will provide a guarantee of all obligations of other members of the Group under the Facilities Agreement, using the form of guarantee included in the Facilities Agreement. The Syndicate will also take security from each member of the Group, to be documented in a separate security agreement. Besides this, Bell is being asked to provide in the facilities agreement specifically the one which state, no proceedings will be pending or threatening, no litigation, arbitration, or administrative proceedings of or before any court, arbitral body or agency, have been started or threatened against the company or any of its subsidiaries. Now, the board of the directors of the Bell holding company are worried about any potential dispute that can be arise during the term loan or the revolving credit facilities provided by the Syndicate of the bankFinance. A bill [as amended in Standing Committee A] to grant certain duties, to alter other duties, and to amend the law relating to the national debt and the public revenue, and to make further provision in connection with finance, in , Cambridge [England], Proquest LLC, 2007.. They are also worried that if any member of the Syndicate want to exercise the rights under the agreement the company would face significant issues. Moreover, in this agreement all the board members of the company are responsible for the liabilities of each other thus if any of the member of the board of directors do many dispute then the entire members will be responsible for the disputes and they are obliged to make payment on behalf of the directors. The company is a holding company and there are several companies are under this group. Moreover, all the companies have their distinct directors who jointly carry put the business activities of the companyD Prentice A Reisberg, Corporate finance law in the UK and EU, in , Oxford, Oxford Universit y Press, 2011.. There are several bankers and financers lend finance to the budding companies and in their essential business requirements in order to take the benefits from the growth and development of the potential companies, which have better future prospects. In order to minimize the risk of the investment the bank and the finance company apply some techniques so that they can avoid the risk and only can be benefitted from the investmentT Rhodes, Euromoney encyclopedia of debt finance, in , London, Euromoney Books, 2012.. The bank and the finance companies require several documentations from the applicants who want loan from the bank and some securities that help the bank to reduce the risk from the investment. There are several different policies of the government which role as a safeguard for the banking and finance company. Apart from this, there are favourable law that protect the side of the bankers and the financers. There are substantial banking and financial law in UK a nd the entire bank practice the law at the time of requirement. However, the law not only support the bankers and the financers but the law has adequate support to the companies or individuals also, which take loan from the banking and the financial bodies. The company, Bell holding company is taking bank loan from syndicate bank and in order to taking the loan they company is boding with the Syndicate bank with a bilateral contract, which provide obligation to the both sideS SCHWARCZ, "SUBNATIONAL DEBT RESTRUCTURING AND THE RULE OF LAW", in Journal of Restructuring Finance, vol. 01, 2004, 129-153.. More in this case the bank prove term loan to the Bell holding company and the revolving credit facility of 3,000,000, with proper documentation and guarantee from the directors of the company thus the company is obliged to pay the EMI and the interest to the bank as per the decision of the contract. In case of any failure the bank would be penalized for not giving their obligation or fu lfil, their requirements. Thanks Trainee name References Bodie, Z R Merton,Finance. in , Upper Saddle River, NJ, Prentice Hall, 2000. Ferran, E,Principles of corporate finance law. in , New York, Oxford University Press, 2008. Finance. A bill [as amended in Standing Committee A] to grant certain duties, to alter other duties, and to amend the law relating to the national debt and the public revenue, and to make further provision in connection with finance. in , Cambridge [England], Proquest LLC, 2007. Prentice, D A Reisberg,Corporate finance law in the UK and EU. in , Oxford, Oxford University Press, 2011. Rhodes, T,Euromoney encyclopedia of debt finance. in , London, Euromoney Books, 2012. SCHWARCZ, S, "SUBNATIONAL DEBT RESTRUCTURING AND THE RULE OF LAW". inJournal of Restructuring Finance, 01, 2004, 129-153.