Commodity Transactions

Clients expect prompt, practical advice, and the ability to follow up with whatever documentation or other action might be required—whether in the form of purchase-and-sale contracts, security and inter-creditor agreements, payment devices, master netting, and other specialized agreements.

Commodity transactions may be inherently risky, making it necessary for market participants to understand and properly document the business terms. Our commodity transactions clients include agribusiness and energy companies and their investors and lenders. At McGrath North, we assist our clients in dealing with the complexity and risks associated with these transactions, which can best be managed if addressed early in the process.  By understanding our clients’ objectives, our attorneys help develop innovative and practical solutions to our commodity clients and are able to draw on other practice groups and their skill sets.  Our lawyers are familiar with the dynamics of the marketplace and have the experience and resources to represent our clients in situations involving their commodity business.

If you are involved in the commodities industry, we suggest you keep the following in mind:

• You want experienced legal representation with the ability to respond rapidly to the dynamics of the commodities industry.
• Commodity contracts receive unique treatment in bankruptcy scenarios, which is important to understand from a financial risk standpoint.
• Credit issues may need to be addressed in a variety of ways including guarantees, letters of credit, netting arrangements, and subordination and intercreditor agreements.
• Logistics can play a critical role in the physical sale of commodities, so expertise in the transportation and warehousing industries cannot be overlooked.

Representative transactions include:

• Tailored transaction confirmation terms
• Master purchase-and-sale contracts and other commodity transaction documents
• Supply agreements
• Marketing agreements
• Risk management contracts
• Storage agreements
• Transportation agreements
• Operating agreements
• Interconnection and other pipeline agreements
• Advising on disputes and arbitrations