BLP called in to redraft £15bn RMBS transaction documents

Berwin Leighton Paisner (BLP) has acted for the issuers of 16 residential mortgage-backed securities (RMBS) worth £15bn, redrafting transaction documents in light of changes to the Direct Debit Scheme rules.

Tamara Box
Tamara Box

The RMBS were originated by Paratus AMC, which was formerly GMAC RFC. BLP was charged with restructuring 13 RMAC RMBS, two Rathmount RMBS and one PMAC RMBS documents at the behest of Barclays Bank in its capacity as the account bank, so that the terms would take account of the new Direct Debit Scheme rules concerning the automatic clawback of payments by borrowers.

The BLP team was led by international structured finance head Tamara Box and senior associate Alex Campbell. DLA Piper is understood to have advised Barclays Bank as the account bank, while Allen & Overy acted for the trustees.

BLP won the mandate following on from its work advising on the restructuring of 34 RMBS that were originated by subsidiaries of failed bank Lehman Brothers. Again this was at the request of account bank Barclays, in this instance advised by Pinsent Masons.

In this deal BLP oversaw the transfer of title to the residential mortgages to the issues of each of the RMBS, then modified the transaction documents addressing Barclays’ concerns over its capacity as a collection account bank regarding the provision of Direct Debit services to special purpose vehicles.