Insolvency Events of Default

As a result of the CV-19 extended shutdown of business, it is inevitable that many borrowers will find themselves in early discussions with their creditors and trade suppliers about rescheduling payments, without realising that the Insolvency Events of Default (IEOD) in their loan facility agreements might be triggered in these circumstances. This note, authored by Jamie Riley QC and Lisa Lacob, considers the extent to which IEOD clauses may go further than what a borrower might consider to be a true insolvency situation, and the impact on IEODs of the March 2020 insolvency reforms announcement. Download the article here.