Restructuring Plans · glossary

Standstill

A promise not to demand money early or sue while the lock-up lasts. It protects Valkenrade from the defaults its own plan may cause. The fund never signed the lock-up, so it gave no such promise. Lock-up Agreement, as summarised, paragraph 6.2 · Chapter 4 · see Event of default, Lock-up

Explained in Chapter 4, The Lock-up Agreement: Undertakings and Consent Fee, of Restructuring Plans.

How it comes up, in Chapter 3
Proposing the plan may itself be an event of default, so Valkenrade moves fast. Its lock-up carries a standstill: a promise not to accelerate or sue while the lock-up lasts. It is signed on the day the plan goes public, so its signers are bound from that first day. Chapter 4 explains the standstill.
Read Chapter 3, Bondholder Committees and Cleansing Inside Information →

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