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 the arranger and agent 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 an agent (as indicated in your reading materials, duties and potential liabilities of an arranger and an agent are different and you should analyse each of them separately).
