Download How can we optimise protection for our risk

“How can we optimise protection
for our risk-averse blue chip client,
by structuring a deal to support its
acquisition of a business with a
contaminated land holding?”
The problem
Late on in a corporate transaction,
environmental due diligence undertaken
by City Law firm Travers Smith identified
a site with potential environmental issues
arising from its previous land use. The
question for Travers Smith was; “How can
we optimise protection for our risk-averse
blue chip client, by structuring a deal to
support its acquisition of a business with
a contaminated land holding?”
In response Travers Smith had developed
an innovative risk-transfer solution to
protect its risk sensitive client, involving
a package of contractual protection and
insurance. An environmental insurance
broker had provided input but Travers
Smith, prior to closure of the deal, sought
additional external support to interrogate
the effectiveness of the proposed structure.
With a decade-long track record of
structuring more than 250 environmental
risk-transfer solutions, to facilitate often
complex property and corporate deals,
Sykes Environmental was approached for
advice.
Our solution
The benefits
With input from the client’s retained
Environmental Consultants, we identified
various loss scenarios. These scenarios
were then tested against the wording of
the risk solution, including a worse case
scenario involving multiple losses. This test
identified that the proposed innovative
solution was robust but additional policy
modifications enhanced still further the
protection afforded by the policy.
The service provided by Sykes
Environmental had the following
benefits:
•
It provided reassurance that, although
innovative, the risk transfer solution that
Travers Smith had conceived for its client
was robust;
•
It helped to enhance the client’s
protection, and increase its comfort levels
as it proceeded with its transaction; and
•
It achieved an overall broader and more
cost-effective risk protection for the client.
“ Stephen Sykes of Sykes
Environmental, with his
unique legal and
environmental insurance
experience, was the
obvious choice for a robust
second opinion on a novel
but deal critical risk
transfer structure. Very
approachable and
responsive.”
Steven McNab
Environment, Health, Safety and Planning
Travers Smith
The Coach House
Cookhams
Sharpthorne
West Sussex
RH19 4HU
Telephone:
+44 (0)1342 811938
email:
[email protected]
web:
www.sykesenvironmental.com