Structuring Environmental Risk Transfers: Key Considerations

Description

Parties in commercial transactions must carefully consider the risks of environmental liabilities involved in the transaction. Counsel structuring commercial transactions involving environmental risk should evaluate and allocate risks and liabilities, known and unknown. This enables clients and counsel to value the anticipated transaction and to minimize the likelihood of future environmental liabilities and regulatory compliance issues.

Environmental risk transfers can be an essential part of a company’s strategy to contractually limit some or all of its risk exposure with regard to contaminated property. This is particularly beneficial when the company is involved in a merger or sale of real property, among other transactions.

It is important for counsel to understand key considerations when structuring a risk transfer, including the scope of the assumption of liability, the financial structure of risk transfers, and the potential tax benefits.

Listen as our authoritative panel of environmental counsel examines environmental risk transfers, their pros and cons, when they should be considered, and the tools available to address the risks. The panel will also discuss key considerations and offer guidance for structuring a risk transfer.