Standstill Agreement What Is

Prior to their accession to the new territories, a status quo agreement was negotiated between India and Densern and the princely states of the British Indian Empire. It was a bilateral form of the agreement. In other areas of activity, a status quo agreement can be virtually any agreement between the parties, in which both parties agree to discontinue the case for a specified period of time. This may include an agreement to defer payments to help a company in difficult market conditions, agreements to stop the production of a product, agreements between governments or many other types of agreements. During the status quo period, a new agreement is negotiated, which generally changes the original loan repayment plan. This option is used as an alternative to bankruptcy or enforced execution if the borrower cannot repay the loan. The status quo agreement allows the lender to save some value from the loan. In the event of forced execution, the lender must receive nothing. By working with the borrower, the lender can improve its chances of repaying some of the outstanding debt. In banking, a status quo agreement between a lender and a borrower terminates the contractual repayment plan of a struggling borrower and imposes certain steps that the borrower must take. A status quo agreement is a form of anti-support measure.

A status quo agreement is an agreement between the company and its creditors that hinders the execution of creditors (see previous: status quo agreement). The agreement is particularly important as the bidder has had access to the confidential financial information of the entity concerned. Any status quo agreement has prevented the parties from adopting a procedure in the currency of this agreement. Therefore, the applicants could not legitimately initiate proceedings until 30 November 2016 without violating the terms of the third status quo agreement. A recent example of two companies that have signed such an agreement is Glencore plc, a Commodities trader based in Switzerland, and Bunge Ltd, an American agricultural commodities trader. In May 2017, Glencore took an informal step to buy Bunge. Shortly thereafter, the parties agreed to a status quo agreement that prevents Glencore from accumulating shares or making a formal offer for Bunge until a later date. At the international level, it may be an agreement between countries to maintain the current situation, in which a responsibility owed to one to the other is suspended for a specified period of time. Status quo agreements are also used to suspend the usual limitation period to make a claim in court. [1] The status quo agreements contained recitals indicating that the purpose of the agreements was to extend the period during which applicants could initiate proceedings. On the other hand, the operational provisions of the status quo agreements dealt with the „suspension“ of time and the „suspension of time“. The applicants referred to the operational provisions and argued that the status quo agreements had resulted in the suspension of the limitation period, while the parties drew attention to the recitals (and certain other factors) and argued that the status quo agreements only lengthened the time frame.

A status quo agreement can be used as a form of defence of a hostile takeover when a target company receives a commitment from a hostile bidder to limit the amount of shares it buys or holds in the target company. By committing to the promise of the potential acquirer, the target company saves more time to set up new takeover defenses. In many cases, the target company promises in return to repurchase the equity holdings of the potential purchaser for the purpose of an increase.

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