Finance Agreements in COVID-19 Crisis Situation

March.27.2020

Relavant Topics in International Financings Due to COVID-19 - Overview

For existing financing arrangements:

  • Material Adverse Effect/Force Majeure
    • New utilization requests
    • Cancelation of existing commitments
    • (Event of) Default
  • Compliance with Financial Covenants
  • (Proactive) Update of the Base Case Models
  • Information requests by the Lenders due to potential (Event of) Default
  • Increased costs due to decrease in rating

For new financing arrangements:

  • Proof that there is no Material Adverse Effect/Force
  • Amending of pre-agreed Financial Covenanants and update of the Base Cast Model to avoid immediate (Event of) Default
  • Increase of costs (interest, fees) due to increased risk
  • Usage of new public financings programs
  • Usage of electronic signatures to avoid signings in persona