This document is a standstill agreement for a firm that considering merger with another firm. It assures that the status quo remains while the partners pursue various alternatives.
Louisiana Standstill Agreements
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Multi-State
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US-L0804
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FAQ
In the banking world, a standstill agreement between a lender and borrower halts the contractual repayment schedule for a distressed borrower and forces certain actions that the borrower must undertake. A new deal is negotiated during the standstill period that usually alters the loan's original repayment schedule.
A standstill agreement prevents a party from issuing proceedings during the currency of that agreement. As such a standstill agreement is a voluntary contractual arrangement between the parties to pause limitation for an agreed length of time (typically 3-6 months).
A standstill agreement prevents a party from issuing proceedings during the currency of that agreement. As such a standstill agreement is a voluntary contractual arrangement between the parties to pause limitation for an agreed length of time (typically 3-6 months).
In a ?standstill clause? the parties to a trade agreement commit to keeping the market at least as open in the future as it was as at the time of conclusion of the agreement.
An agreement between two people or companies in which the person or company lending money agrees that the loan need not be paid back for a period of time: The company has a standstill agreement on its debt repayments.
A standstill agreement, for use in the context of a restructuring, whereby secured creditors agree not to enforce their security or demand payment of their debts for a period of time with the aim of enabling a consensual restructuring to be negotiated.
Example: if a party, in a trade agreement, commits to allowing 30% foreign ownership in domestic companies and later on decides unilaterally to allow 40%, the party can re-introduce the original level of 30% whenever it wishes (but it cannot restrict further below 30%).
