3VB's finance column: Is Coronavirus a Material Adverse Change? | Practical Law

3VB's finance column: Is Coronavirus a Material Adverse Change? | Practical Law

Rebecca Zaman of 3VB asks: Will Covid-19 entitle lenders to exercise Material Adverse Change (MAC) clauses in financing contracts? MAC clauses are extremely common in finance documents but have not proved to be particularly useful during past market disruptions. This time, she argues, the extraordinary events triggered by the Covid-19 pandemic may well be enough to trigger a MAC clause. As usual everything depends on the drafting of the clause.

3VB's finance column: Is Coronavirus a Material Adverse Change?

Practical Law UK Articles w-024-5454 (Approx. 6 pages)

3VB's finance column: Is Coronavirus a Material Adverse Change?

Rebecca Zaman of 3VB asks: Will Covid-19 entitle lenders to exercise Material Adverse Change (MAC) clauses in financing contracts? MAC clauses are extremely common in finance documents but have not proved to be particularly useful during past market disruptions. This time, she argues, the extraordinary events triggered by the Covid-19 pandemic may well be enough to trigger a MAC clause. As usual everything depends on the drafting of the clause.