Facing the credit crunch – strategic choices in derivatives close-outs

James Curtis, Neil Griffiths, Brett Hillis, Rosali Pretorius and Matthew Sapte, Denton Wilde Sapte LLP

Today, many parties to derivatives transactions are grappling with how to manage their exposure to counterparties in financial difficulties, poring over the terms of the contracts in place between them. Parties may have more choices than they first think. In particular, they should not forget the common law rights that sit alongside written contractual rights.