Scope

This nugget looks at the issue of the scope of the loan agreement – that is, what companies in the borrower’s group might find their businesses affected by it, and what companies might affect the availability of finance under it. It discusses the extension of some provisions in the loan agreement to Group members which are not Obligors and considers the concept of Excluded Companies. It also looks at whether the “Company” should be the ultimate holding company and the importance of the issue of change of ownership or control of the Company.

 

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Scope worksheet

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Scope

The scope of the loan agreement

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