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With projects often needing amendments or waivers from financiers, the use of project agents instead of trustees has been suggested for project bonds. Richard Forster reports

The US$231 million Merida III project, one of the first independent power plants in Mexico, reached financial close on June 19. The project is being developed to sell power to the Mexican national electricity utility, Comision Federal de Electricidad (CFE). Lead sponsor AES Corporation with Nichimen Corporation in Japan and Grupo Hermes of Mexico looked to US firm Chadbourne & Parke. New York partner John Baecher and Peter Fitzgerald in Washington led the team. Also representing the sponsors were Antonio Franck and Ignacio Pesqueira of Franck, Galicia, Ducland & Robles in Mexico City.

Arthur Andersen has abandoned plans to acquire Wilde Sapte, the city law firm it settled on after an 18-month search. Because of the defection of some of Wilde Sapte's most highly-regarded lawyers, Andersen felt the nature of the deal had substantially changed. Although they had originally voted in favour of the transaction, Wilde Sapte asset finance specialists David Smith and Mario Jacovides resigned shortly afterwards to join UK rival Allen & Overy. Also moving to Allen & Overy was top leasing partner Graham Smith. Several other Wilde Sapte stars were reported to be in talks with rival firms, including Philip Rocher, a litigator, and shipping finance head Robert Dibble.

Italy continues to attract foreign law firms with UK firm Ashurst Morris Crisp announcing a strategic alliance with Milan-based Negri-Clementi Montironi & Soci. The agreement, based on an equal relationship, involves reciprocal exclusive referrals. Ian Nisse, Ashurst's managing partner, says: "This alliance is strategically based and strongly client driven for both firms." Ashurst, with offices in Paris, Brussels and Frankfurt, is trying to build a pan-European partnership.

New benchmarks in corporate loan securitization (collateralized loan obligations, or CLO) technology were set when the Structured Finance Group at the London branch of The Sumitomo Bank completed their Aurora CLO on April 8 1998. The £1.395 billion (US$ 2.3 billion) issue of floating rate notes by Aurora Funding was supported by a structure which:

Potential moratoria on payments of foreign currency to overseas persons need not necessarily worry exporters. They can structure to protect their interests. By Andrew O’Keeffe of Simmons & Simmons, London

• US firm Paul Hastings Janofsky & Walker is expanding its London office. Wayne McArdle, former chief counsel of the European Bank for Reconstruction and Development, has joined the firm as a partner. McArdle is a corporate finance specialist, with significant experience in project finance transactions in central and eastern Europe. Corporate partner and securities specialist Joel Simon is also relocating from New York to London, along with a corporate associate.

The demand for infrastructure improvement in South Africa exceeds the scope of the public sector. The opportunities for private sector finance are considerable. By Jabulani Mtshali of Deneys Reitz, Johannesburg

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

As the securities market increasingly adopts the Internet, the SEC has issued guidelines to help foreign securities companies avoid US registration. By Winthrop Brown of Shaw Pittman Potts & Trowbridge, Washington DC