Bankruptcy Remote Structure

A bankruptcy remote structure is a financial arrangement designed to shield certain assets from the risks associated with bankruptcy. Essentially, it involves isolating specific assets or entities in such a way that if the parent company or another related entity goes bankrupt, these protected assets remain unaffected. This strategy is commonly used in finance and securitization to ensure that investors or creditors can still access their investment value, even if the main company faces financial difficulties. It enhances the stability and attractiveness of certain financial transactions by reducing risk.