Waiver (Financial Restructuring & Bankruptcy Glossary)

Summary

Following a borrower-debtor's default under a loan agreement, an agreement by the lender to refrain from exercising remedies to which it is otherwise entitled under the loan agreement, bankruptcy law or state law. Waivers are generally utilized when there is a one-time covenant breach by a company experiencing financial difficulties that the lender assesses will not materially prejudice its ability to receive payment on the loan.