Standstill Agreement (Restructuring)

The commonalities of a status quo agreement are typical: offshore companies based in Bermuda, the British Virgin Islands, the Cayman Islands, Guernsey, the Isle of Man, Jersey and Mauritius are no more immune to the effects of the pandemic than those created on land. Typically, they face challenges when the company violates or violates an obligation in one of its financing agreements, or when the company may not be able to pay all of its debts when it matures, if the level of payment is maintained due to a credit crunch. By cooperating with the borrower, the lender can improve its chances of recovering some of the outstanding debt.