What Do You Know About The Standstill Agreement

In 2019, video game distributor GameStop signed a status quo agreement with a group of investors who wanted changes in corporate governance, believing that the company had intrinsic value when the share price reflected. A status quo agreement between a bank and a borrower operates in lines similar to those shown above. It suspends the contractual repayment plan of a stressed borrower and imposes certain conditions on the borrower. 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. If, for some reason, it is not reasonable or inexpensive to adopt the procedure during this period, the parties may, by a status quo agreement, agree not to identify it and, if they need it later, not be prevented by the default limitation period. The agreement is to extend or suspend the limitation period, since the parties do not raise the restriction in question. A status quo agreement is a form of anti-support measure.

The agreement is particularly relevant because the bidder would have access to the confidential financial information of the entity concerned. After receiving the commitment of the potential purchaser, the target entity has more time to set up additional defence facilities for the acquisition. In some situations, the target entity agrees to repurchase shares of the target with a premium in return for the potential purchaser. In her judgment, Mostyn J said: “I was told that it was “usual practice” to agree to such an agreement. If this is a common practice, I suggest that it is a practice that should cease immediately. It is not connoisseurs who are in court. If the parties wish to agree on a moratorium for negotiations, the request should be issued in due course and then ask the court to suspend the proceedings during negotiations. Otherwise, as I pointed out in the argument, it is easy to get angry at the clear parliamentary intent…… I propose that under no circumstances, in the future, a private moratorium should ever be regarded as a stop to the watch when it comes to taking into account delays. In other words, a privately agreed moratorium at the end of the deadline should never be considered a good reason for delay in the future.

Status quo agreements are also used to suspend the usual limitation period to make a claim in court. [1] It is significant that the agreement did not provide for the Dominion of India to deploy Indian troops to the state, while British India had maintained several cantons, notably in Secunderabad, as part of its “subsidiary alliance” with the state.