Critical Issues for Standstills or Restructuring

TOOL 6.3

Standstill/Reference date (starting point)
Identities of the parties involved
How the exposure to the borrower is calculated
Term of the agreement (run off date)
Voting rights
New money clauses
Loss sharing
Control of the cash
Events of default
Establishment of the cash sweep from operational cash flow, asset sales, insurance proceeds & capital market proceeds (for excess cash to repay signatories)
Control over capital expenditures, investments, and giving of loans / guarantees
No calling an event of default or initiating insolvency proceedings
Steering committee
Appointment of the monitoring agent
Taking of security / giving up negative pledge
Milestones on financial information, projections, asset sales and company actions etc.
Co-operation with professional advisors
Approval public and media announcements
Restriction of distributions and related party transactions
Consent required to assign / transfer

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