When the borrower's financial position starts to deteriorate, a common first step is to approach the lender seeking to revisit the terms of the finance documents. Depending on the circumstances, this may include an amendment to reschedule the debt to make the repayment dates in the facility agreement achievable. The need for a one-off waiver may also arise where the borrower's circumstances have changed in a more temporary way. For example, it might have had a temporary downturn in business, causing it to breach a financial covenant. In these circumstances, the borrower will not need a permanent change to the facility agreement but rather just a short-term waiver from the lenders to avoid it being in default.
Any changes to the terms of an existing facility agreement must be made by all parties to the original document. As a matter of best practice, the changes should be made in writing.
In syndicated facilities, the facility agent will usually sign the relevant documentation on behalf of all the lenders in the syndicate under the terms of its appointment as
To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.
**Trials are provided to all LexisNexis content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisNexis services please email customer service via our online form. Free trials are only available to individuals based in the UK, Ireland and selected UK overseas territories and Caribbean countries. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
The Insolvency Service consultation on corporate civil enforcement reforms, published on 25 March 2026, has had its closing date extended from 17 June...
R3, the UK trade association for restructuring, turnaround and insolvency, has appointed Monica Kapur, as Chair of its Midlands committee, succeeding...
Restructuring & Insolvency analysis: This case confirms that a restitutionary claim founded on an alleged total failure of consideration may, in...
The Insolvency Service has reported the sentencing of two men following an insolvency fraud and money laundering investigation. Tariq Sarwar was...
Schemes of arrangement—convening hearing and sanction hearingConvening hearingPursuant to section 896 of the Companies Act 2006 (CA 2006), the court may order a meeting of the creditors or class of creditors, or of the members or class of members, to be summoned in such manner as the court directs.
Late payment penalties—inheritance taxWhile interest often accrues on overdue tax, the late payment of certain taxes may also attract a penalty. For information on the interest accruing on overdue tax, see Practice Notes: IHT—payment deadlines on death—Interest on IHT and Interest on late paid
If a beneficiary signs a deed of disclaimer of their share of an estate and the estate pays their legal fees, will that count as a PET against their estate?A disclaimer is the refusal of a gift prior to acceptance. The refusal of the gift must take place before the beneficiary accepts any benefit
Strike out—making an application to strike out a statement of caseA strike out order can be made either following an application by the parties or on the court's own initiative. This Practice Note deals with the scenario of the order being made following a party's application.Making an application
0330 161 1234