Wrangle over cov-lite loan points to drafting problems

By Michael Peterson

A number of investors in a $800 million term loan are seeking to establish whether or not they have covenant rights

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Comment by: Anonymous. Posted 15 years ago [2009-02-10 16:58:41]

The stuff that lawyers dream of...

Comment by: Anonymous. Posted 15 years ago [2009-02-10 14:34:17]

Hopefully other lenders, especially large particiapnts, will notice this and notify the borrower and agent. The credit agreement is the operative document governing the term loan, and the language is unambiguous. The credit is stressed, and actions need to be taken to protect the integrity of the credit. I'm sure borrowers would take the same position if circumstances were reversed.