Lender of record definition

View the related practice notes about Lender of record

Key elements of a standstill agreement

Key elements of a standstill agreement When restructuring is considered rather than formal insolvency proceedings (see Practice Note: Benefits of informal restructuring over formal proceedings) the company may want to ensure that relevant creditors quickly enter a standstill agreement to gain some breathing space to consider a restructuring plan. A standstill agreement is an agreement between the company and its creditors restraining creditor enforcement action (see Precedent: Standstill agreement). Parties The debtor company will be a party, together with operating subsidiaries holding valuable assets or at risk of formal proceedings or breaching their financial covenants, as well as usually the ultimate parent company. Other parties will be creditors and other stakeholders who are essential to the success of the company, eg key customers, suppliers (if the company is a critical client, useful concessions may be obtained) and the pensions trustee/regulator (if there is a large defined benefit pensions deficit). Who has a seat at the negotiating table (and who should be party to the...

Project finance—Export Credit Agencies, multilateral lenders and development finance institutions

Project finance—Export Credit Agencies, multilateral lenders and development finance institutions Projects are typically financed on a limited recourse basis through one or more sources, including: • government contributions • senior debt provided by commercial lenders and/or funds (see Practice Note: Project finance—key finance parties), and • equity provided by project sponsors (see Practice Note: Project finance—key project parties—Sponsor) However, in certain jurisdictions, senior debt provided by commercial lenders and/or funds may be difficult to obtain due to the limitations on local liquidity and/or actual or perceived local political risks (see Practice Note: Project risks and risk allocation—Legal and political risk in a project finance transaction). This funding gap in developing markets may be bridged by funding provided by institutional lenders, such as Export Credit Agencies (ECAs) and multilateral or bilateral (national) Development Finance Institutions (DFIs). Alternatively, lenders providing senior debt may be supported by an ECA or DFI by means of a guarantee or other form of insurance cover. Typically, ECAs are involved in projects abroad to promote...