- Lenders should negotiate broader Mac clauses in
English law governed finance agreements following a recent
High Court ruling;
- The Court took a narrow interpretation of the
clause, proving sponsors success in whittling away the
breadth and effectiveness of Macs in loan
- The ruling diminishes gaps between US and
European best practice, in that event of default Macs do not
feature in US loan documents;
- It is a rare example of case law on the Macs in a
finance or corporate context;
- Mac negotiations within private M&A will have
stronger focus on party awareness.
Lenders should curb the material adverse change
(Macs) concessions being granted to borrowers under English law
loans, after the High Court’s narrow
interpretation in a recent ruling.
The Court’s decision limits the...