standstill, debt rescheduling, debt-to-equity conversions, and/or the provision of new money). COVID-19 is devastating low- and middle-income countries, adding to their debt burdens and threatening a far-reaching sovereign debt crisis. For advice on standstill agreements relating to debt obligations, please contact any member of the A&L Goodbody Restructuring & Insolvency team. Lusaka ~ Wed, 30 Sept 2020. In particular, it focuses on the link between sovereign restructurings and The CRO serves as an honest broker to quickly instill trust and confidence among all stakeholders. Date published: 7 April 2020 Print Applying different debt restructuring scenarios to a workshop case study financial model. Dubai World on 20 May 2010 said that it had reached an agreement "in principle" with most of its bank lenders to restructure debt worth $23.5bn (£16.4bn). Finance minister Dr Bwalya Ng’andu has disclosed that Zambia is hoping to reach a debt restructuring agreement with creditors by April, 2020, a move that will see the country getting nearly US$1 billion of debt service relief from its requests. Changes to preventative composition with creditors When restructuring is considered rather than formal insolvency proceedings (see Practice Note: Benefits of restructuring over formal proceedings) the company may want to ensure that relevant creditors quickly enter a standstill agreement to gain some breathing space to consider a restructuring plan. This was one motivation for the inclusion in the G20 agreement of monitoring by IFIs on the use of the reallocated debt service towards health or economic support, in order to avoid mitigate moral hazard. Debt restructuring (otherwise known as "turnaround" or a "workout") describes a process whereby a company facing financial pressure will agree with its lenders and principal creditors a new contractual framework for financial support involving a restructuring and/or rescheduling of the company's bank facilities and other debt obligations. 2 TEMPLATE 1: ... “restructuring” and if so whether it might make a difference if the “restructuring” is ... notes and other debt instruments issues by the company, and obtain copies. Restructuring & Insolvency. Restructuring debt assets - a standstill agreement If the parties further negotiate for any debt restructuring plan, the creditor may first consider setting out further conditions to be complied with by the debtor in consideration of the creditor's agreement to putting on 'hold' enforcement action(s) in a standstill agreement. Once the standstill agreement has been signed, the next stage is to negotiate the final restructuring deal. d) of the Bankruptcy Act and standstill agreements on debt. A scheme of arrangement can be proposed under Section 179 of the BVI Companies Act 2004. Details of the north-east company’s looming transfer of … At a meeting in Abu Dhabi, Al Jaber Group, which has interests in property, manufacturing and aviation, submitted a draft standstill agreement and a business proposal to banks involved in its debt restructuring talks, said one person close to the company who asked not to be identified. Standstill agreements are occasionally also deployed. Principle B3 establishes the conditions that a legal system should satisfy to foster informal debt restructurings; Principle B4 deals with debt restructuring nam cheong limited restructuring and company's debt standstill introduction ... | november 5, 2020 Scottish oil and gas drilling giant KCA Deutag is changing hands as part of a financial restructuring to slash debt. New rules on debt restructuring agreements “Standstill agreements ... debtorin obtaining approval of the debt restructuring agreement orthe execution of the standstill agreement. en The latter would allow countries to apply for a debt standstill and seek the restructuring of their debt through court oversight of an agreement between creditors and debtors. The business sought a standstill agreement, which allowed it time to negotiate with the secured lenders and implement a robust restructuring that reduced its debt burden by nearly 50 percent. This column argues that the specific characteristics of sovereign debt re-negotiations are important. In Belgium, an out-of-court restructuring agreement … The COVID-induced surge in public debt has raised concerns about its sustainability, further increasing the need to improve the debt-restructuring process. A standstill agreement can preserve the claimant’s position regarding limitation by either suspending or extending time. Debt deal. and extraordinary administration proceedings (Law Prodi bis, Marzano Law). enhanced restructurings and hybrid procedures and their interaction with formal insolvency procedures, following the conceptual framework of the World Bank Principles. Standstill Agreement template Restructuring Process Timetable . 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