Borrower Default and Lender Next Steps Process Map

Summary

This process map provides an overview of the actions that lenders may take following a default or an event of default under a credit agreement by a borrower. In some instances, the actions or events that occur may be automatically triggered under the credit agreement, and in other circumstances, the administrative agent, acting alone, or acting with the direction or consent of the requisite lenders, must take certain steps to initiate the actions. The process map below provides a visualization of the default process starting with a borrower covenant or payment default through the exercise of various lender remedies.