News & Analysis as of

Lenders Material Adverse Effects

Hogan Lovells

The Arrium Proceedings – when is a company insolvent and when is a representation not a representation?

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The Supreme Court of New South Wales has recently handed down its decision in proceedings (“Arrium Proceedings”) brought by a number of lenders against former officers and employees of Arrium Limited and its subsidiaries...more

Emmet, Marvin & Martin LLP

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

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...more

Pillsbury Winthrop Shaw Pittman LLP

Snow Phipps: No MAE or Ordinary Course Breach Related to COVID-19

Delaware Chancery Court awards specific performance after finding that buyer failed to demonstrate a material adverse effect or ordinary course breach by target and that buyer failed to use reasonable best efforts to obtain...more

King & Spalding

REIT Advisor – August 2020 - Recent Amendment Trends for REIT Credit Facilities

King & Spalding on

The onset of the novel Coronavirus pandemic (“COVID-19”) led to an abrupt shutdown of businesses worldwide and across numerous industries. The shutdown’s impact on the commercial real estate market generally, and on REITs...more

King & Spalding

Impact of COVID-19 on Financings Secured by Real Estate Assets

King & Spalding on

A lot of discussions have taken place over the past seven months or so in light of COVID-19 and the market reaction to it. The purpose of this client briefing is to share some observations with you from our recent experiences...more

Womble Bond Dickinson

In the Context of Corporate Lending, Should Parties Push the Pause Button?

Womble Bond Dickinson on

The COVID-19 pandemic has wreaked havoc on financial markets and businesses around the world. In a time of social distancing, constrained supply chains, depressed demand in almost all sectors of the economy, and tightening of...more

A&O Shearman

Liquidity, MAC and Cessation of Business in English Law Loan Financings

A&O Shearman on

The COVID-19 pandemic and the responses adopted by governments around the world to mitigate its human cost will have a considerable impact on economic activity. We are seeing the forced closures of businesses and restrictions...more

Brownstein Hyatt Farber Schreck

COVID-19—Evaluating Material Adverse Change Clauses in Loan Agreements

Access to credit is a question of paramount importance to borrowers navigating uncertain times, and as market participants work to assess the impact of COVID-19 on the broader economy, the question has arisen as to whether...more

Dechert LLP

COVID-19 as an MAE in English Law Loan Agreements

Dechert LLP on

Whilst the world reels from the impact of the COVID-19 coronavirus and rightly focuses on preserving lives, many businesses will nevertheless need at the same time to fight to stay afloat as the repercussions of the virus hit...more

Wilson Sonsini Goodrich & Rosati

Considerations in Accessing Revolving Credit Lines

The COVID-19 pandemic has resulted in unprecedented economic challenges for numerous industries throughout the world that have put tremendous stress on the global financial markets. As a result, numerous companies have been...more

Wilson Sonsini Goodrich & Rosati

Venture Lending in a Time of Crisis

Many early stage and emerging growth companies utilize venture lending as a source of funding to compliment equity financing. But what happens to these loans in difficult and uncertain times?...more

Katten Muchin Rosenman LLP

COVID-19 – Return of the MAC, or Breathing Space?

Key Points - Material adverse change (MAC) provisions focus on whether prevailing events and circumstances have a material adverse effect on the borrower. - Case law suggests the key reference materials for assessing...more

Shumaker, Loop & Kendrick, LLP

Client Alert: Commercial Loan Documentation: Effects of COVID-19

The fallout from the World Health Organization-declared global pandemic arising from the corona­virus disease (“COVID-19”) is currently having, and will certainly continue for some time to have, severe impacts on almost all...more

Akin Gump Strauss Hauer & Feld LLP

Liquidity Management in Uncertain Times

Drawing down on the full availability under a revolving credit facility can be a useful source of liquidity. However, in order to do so, a borrower must carefully analyze whether they can satisfy all conditions precedent to...more

Akin Gump Strauss Hauer & Feld LLP

MAE in Loan Agreements: A Framework for Lenders and Borrowers During the Current Crisis

Projections of the full impact of COVID-19 (more commonly known as the coronavirus) on the economy remain extremely uncertain and continue to reflect a variety of outcomes. As a result of this uncertainty, businesses who have...more

Vinson & Elkins LLP

COVID-19: Does The Current Crisis Threaten Borrower Access To Credit Facilities?

Vinson & Elkins LLP on

On March 11, 2020 the World Health Organization (WHO) declared the COVID-19 outbreak to be a pandemic. At a briefing in Geneva, WHO Director-General Tedros Adhanom Ghebreyesus explained the decision: “In the past two weeks,...more

McGuireWoods LLP

Lessons Learned: Pre-emptive Revolver Draws (Potential COVID-19 MAE)

McGuireWoods LLP on

Given the current economic conditions relating to COVID-19, it is important that lenders conduct an internal review relating to potential pre-emptive revolver draws and take appropriate protective action to avoid making...more

Proskauer Rose LLP

Coronavirus: Private Credit Lenders

Proskauer Rose LLP on

The unexpected emergence of the COVID-19 virus presents a wide range of new challenges and opportunities. The initial reaction of the syndicated market has been to pull back. In these times, private credit lenders act as...more

A&O Shearman

Coronavirus Implications in Loan Documents

A&O Shearman on

The widespread reach of the coronavirus (“Covid-19”) outbreak has unfavorably impacted numerous industries all over the world and sent shock waves across the global financial markets. As the outbreak has spread globally, a...more

Hogan Lovells

Impact of the Coronavirus outbreak on Finance Sector

Hogan Lovells on

On 31 January 2020, the World Health Organization has announced the outbreak of novel coronavirus (2019-nCov), sourced from Wuhan, as a Public Health Emergency of Concern. The impact of the coronavirus outbreak, social...more

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