Legal Aspects of International Finance (154)

  Apollo Bank ("Apollo") is a bank based in England. It has suggested to one of its customers, Prospect Limited ("Prospect") that Prospect should obtain new finance from a syndicated loan, the proceeds of which would be used to repay Apollos's existing lending to Prospect, which is currently in default. Prospect has no other facilities. Apollo proposes to act as an arranger of the syndicated loan, which is to be governed by English law. As its legal adviser, advise Apollo on its potential liabilities in acting as an arranger and ways in which they can be mitigated. Please start your response by: “Potential liabilities that Apollo can face in acting as an arranger are as follows: …” Please use formal language and show your ideas. Use more as you can references, footnotes.