In other words, standstill agreements set a temporary legal “freeze” on trade relations or, at the very least, the parties to the agreed relationship are suspended. However, suspension should not be confused with a waiver of obligations. A status quo agreement recognizes the economic challenges posed by the severe situation of the Covid 19 pandemic and formalizes a legal agreement between a debtor company and creditors that can allow the company to survive and get creditors a better return than they would achieve in the event of liquidation. It offers a defined period of financial stability, keeps the debtor company out of formal insolvency proceedings and concentrates the minds of the company and creditors, who are now acting as an organized collective, on restructuring plans.
Standstill Agreement Borrower
By Marek Gwóźdź|2021-10-09T07:58:26+01:00październik 9th, 2021|