Borrower Default and Lender Next Steps

This practice note provides a guideline of actions that lenders may take following, and sometimes prior to, 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.