Market Trends 2020: COVID-19 Ramifications in Loan Documents

Summary

This practice note provides an overview of certain key provisions of credit agreements that will need to be reviewed to determine how the COVID-19 (coronavirus) crisis—and the economic turmoil in its wake—affects a borrower's ability to meet its ongoing obligations under such agreements and how borrowers and lenders may protect themselves going forward. It also considers provisions of credit agreements that may be utilized for cash preservation and liquidity purposes or to access alternative funding.