CBA SPRING LAW SERIES 2020

Presented by the CBA Business Law Section

Implications of COVID-19 for Loan Agreements and Lending Transactions

The COVID-19 pandemic will have significant and lasting implications for industries, businesses and the Canadian and US loan markets. Borrowers and lenders are navigating unprecedented and continuously evolving times to understand the impact of COVID-19 on existing and new financing arrangements. Borrowers, on the one hand, are trying to understand and mitigate the impact on their businesses, cash flow and obligations. Lenders, on the other hand, are trying to accommodate the challenges faced by their borrowers while protecting their loan rights and collateral values.

Our panel will discuss the following issues in connection with the impact of COVID-19 on loan agreements and loan transactions:

• MAC and MAE Provisions
• Conditions Precedent
• Representations and Warranties
• Financial Ratios and the Definition of EBITDA
• Events of Default
• Remedies and Next Steps
• Sources of Additional Liquidity
• Considerations in Asset Based Lending Transactions
• Mechanics of a Virtual Closing

Presenters