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Mezzanine debt, until recently a feature only of US project financings, is spreading to projects in other markets. The Asian crisis has increased interest in alternative funding sources. By Alistair MacRae of Norton Rose, Singapore

Van Anken Knüppe Damstra, the Rotterdam-based firm with a strategic alliance with big five firm Deloitte & Touche, is to merge with Eindhoven-based Prinsen van der Putt. The merger will take place on January 1 1999. The move is a further step in the ambitious plans for legal services of the Dutch practice of Deloitte Touche Tohmatsu. "Within two years we expect to be one of the four biggest legal practices in the Netherlands," says a spokesperson for Deloitte & Touche. There are negotiations with other law firms under way, and the spokesperson says: "We expect further announcements in the next few months".

The changeover to the Euro will have a substantial impact on European price sources. The Fibor (Frankfurt Interbank Offered Rate), for example, will vanish from January 1 1999. On that date, one to 12 month Fibor rates will be replaced by one to 12 month Euribor rates (Euro Interbank Offered Rate), and the Fibor overnight rate will be replaced by the Eonia rate (Euro Overnight Index Average). Euribor and Eonia rates will be calculated on a daily basis using quotes from a maximum of 64 European banks, 12 of which are domiciled in Germany.

Can the resolution of future sovereign debt crises be eased by changes in the legal documents that evidence these obligations? In the first of a series of three articles, Lee C Buchheit of Cleary, Gottlieb, Steen & Hamilton, New York considers the sharing clause

Paragon has completed a £300 million (US$498 million) securitization of a portfolio of mixed consumer loans, including car loans, timeshare loans and stocking finance agreements. It is a first for Paragon, traditionally a securitizer of mortgages. The floating rate notes were issued through a special purpose vehicle, Finance for People (No. 3). JP Morgan acted as lead manager and Morgan Guaranty Trust Company of New York as trustee. Slaughter and May advised Paragon and Finance for People, with a team led by corporate partners Chris Smith and Andrew McLean. Also involved on the issuer's side are Tods Murray, providing Scots law advice and L'Estrange & Brett providing Irish law advice.

Quebec’s new Bill 181 amends the Civil Code to require registration of secured transactions. It has important implications for securitization. By Sterling Dietze of Stikeman, Elliott, Montreal

A non-US court applying the non-US law governing a swap contract may not recognize a restraining notice served by a creditor as a defence to payment. By Mark P Zimmett from the Law Offices of Mark P Zimmett, New York

Article 1, paragraph 1 of Legislative Decree No. 239 of April 1 1996, containing provisions aimed at amending the financial treatment of interest and other capital gains deriving from securities and similar bonds, as amended by Article 12, paragraph 3 of Legislative Decree No. 461 of November 11 1997, will enter into force on July 1 1998. It provides that the 12.5% withholding tax under Article 26, paragraph 1 of the Decree of the President of the Republic No. 600 of September 29 1973 will not be applied to interest and other capital gains deriving from securities and similar bonds issued in Italy by certain entities to the extent that:

Together with the Federal Stock Exchange Act, of which the second part entered into force in January 1998, Article 161bis of the Swiss Criminal Code has been amended. Under this provision, any person who substantially influences the price of stock traded on the Swiss stock exchange with the intention of enriching him or herself or a third party, will be punished by imprisonment or a fine.

The double tax treaties executed between Portugal and Germany, Italy and Finland include a provision whereby a tax credit is granted to the residents of any of these countries if they obtain some elements of their income in Portugal where it is subject to tax but exempt. Relevant elements of income include the payment of interest and the payment of dividends.