COVID-19 AND THE LAW: MAC/MAE Clauses in New York Credit Agreements

Emmet, Marvin & Martin LLP

With the COVID-19 pandemic continuing to adversely impact businesses across the globe, for the past year lenders have been reviewing their portfolios for credit degradation. Credit agreements will often contain a clause in which further lending obligations cease upon the occurrence of a “Material Adverse Change” (MAC) or a “Material Adverse Effect” (MAE). In a few cases, clauses will expressly exclude pandemics from the definition of MAC or MAE. More typically, however, such clauses will define an MAC or MAE broadly to encompass any negative change to the borrower’s business, operations, balance sheet or financial condition.

Please see full Publication below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Emmet, Marvin & Martin LLP | Attorney Advertising

Written by:

Emmet, Marvin & Martin LLP

Emmet, Marvin & Martin LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.