A loan agreement is far more than a simple promise to repay; it is a complex legal instrument meticulously defining the entire relationship between borrower and lender. It strategically allocates risk, imposes binding obligations, and dictates the precise rules of engagement throughout the life of the debt. A poorly drafted or inadequately negotiated loan agreement can create significant financial exposure for a lender or impose crippling operational restrictions and unforeseen liabilities on a borrower. Legal Sandbox provides expert legal services in debt financing, serving both lenders and borrowers in Georgia with the strategic counsel required to structure and negotiate financing arrangements that are clear, commercially sound, legally robust, and fully enforceable under Georgian law.
Our expertise covers the entire lifecycle of a financing transaction, from initial structuring and negotiation through to repayment or, if necessary, resolution and enforcement. We act as architects of clear and comprehensive financing documentation. We meticulously draft and negotiate all core agreements, including term loan agreements tailored for specific purposes, flexible revolving credit facility agreements providing ongoing working capital, and complex syndicated loan documents involving multiple lenders. Our unwavering focus is to ensure that the agreed commercial terms are precisely and unambiguously reflected in the legal text, safeguarding our client's interests—whether lender or borrower—at every critical juncture of the deal.
For secured lending transactions, the quality and enforceability of the security package are paramount to mitigating lender risk. Legal Sandbox lawyers are experts in structuring effective and legally sound collateral arrangements compliant with Georgian regulations. This involves advising on the appropriate security mix and drafting the full suite of required security documents, such as mortgages (იპოთეკა) over real estate, pledges (გირავნობა) over movable assets (including equipment, inventory, receivables) and bank accounts, alongside corporate or personal guarantees (გარანტია). Crucially, we manage the entire process of perfecting these security interests through registration at the National Agency of Public Registry (NAPR), ensuring they are properly recorded and legally enforceable against potential third-party claims, thereby providing maximum protection for the lender.
Furthermore, we provide strategic advice during the negotiation of financial covenants – the operational and financial performance metrics a borrower must maintain throughout the loan term. We work to ensure these covenants are commercially reasonable and achievable for borrowers, while remaining sufficiently protective to give lenders adequate oversight and early warning mechanisms. When financial distress occurs and loan terms cannot be met, we provide crucial legal support. For borrowers, we lead negotiations for loan workouts and debt restructuring, seeking viable solutions to avoid default. For lenders facing non-performing loans, we develop and execute clear, assertive strategies for enforcement action, including enforcing guarantees, realizing collateral through legally mandated procedures, and pursuing all available remedies to maximize recovery of outstanding debt.