Events of Default Enforcement, Remedies, and Cures (Credit Agreement)

Summary

This practice note discusses the cure or waiver of events and defaults, and how proceeds following an event of default are distributed to creditors under a "waterfall." It also discusses cross-default and cross-acceleration clauses, which pose a particular risk to the loan parties' capital structure, and additional lender remedies, such as setoff provisions. This practice note includes additional practical guidance.