Article
When Can A Lender Pull The Plug On A Credit Agreement? Material Adverse Change Clauses Explained
Picture this: a borrower is relying on a revolving credit facility to meet working capital needs. Suddenly, it is told by its lender that a “material adverse event” has occurred, and the facility is now being frozen or called. What does this mean, and what can the borrower do?
Devry Smith Frank LLP