Finance parties in a transaction frequently use structured vehicles using a borrower orphan as an instrument to secure their position. This is due to the nature of an orphan trust and the independence of its directors which provides an extra degree of comfort when making decisions on enforcing their transaction security. In this article, we discuss the dynamic of orphan structures and how new developments in the industry, in particular the development of the Global Aircraft Trading System (“GATS”), may further enhance the security offered by orphan structures.

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