A status quo agreement between a lender and a borrower may also exist when the lender stops requiring a planned interest or capital payment for a loan to give the borrower time to restructure its debts. A status quo agreement is a form of anti-support measure. All creditors participate in the ideal status quo agreement, so there is no risk of outside fees that would adversely affect those who have agreed to the waiting period. Business diagnosis, with debt analysis, contracts, guarantees, special circumstances of credit, business activity and the entrepreneur`s day, in the choice of legal route for the specific case Assistance for the preparation and preparation of legal documents, accounting, tax and financial, preparation for judicial recovery, out-of-court proceedings and bankruptcy negotiations with creditors , in the judicial or extra-judicial context Application of moratorium strategies and status quo agreements with national and international creditors, credit framework, depending on the nature, guarantee and specific details of the establishment of judicial and extrajudicial recovery plans Analysis of challenges, credit qualifications, execution of foreign and non-congruent credits, guarantors and special procedures in the context of the creditors` tendering Of strategic plans and action plans in an aid environment to Judicial and extrajudicial recovery in financial analysis , for passive modeling of the repayment plan The agreement is particularly important, as the offeror had access to the confidential financial information of the target company. 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. A status quo agreement is a contract that contains provisions governing how a bidder in a company can buy, sell or vote shares of the target company. A status quo agreement can effectively paralyze or stop the hostile takeover process if the parties are unable to negotiate a friendly agreement. A company that is pressured by an aggressive bidder or activist investor receives status quo assistance to weaken the unsolicited approach.
The agreement gives the target entity greater control over the deal process by requiring the bidder or investor to buy or sell the company`s shares or launch proxy contests. Moro Domingos – Marcovici Advogados has extensive experience in situations of judicial recovery; outside the courtroom bankruptcy (and bankruptcy); collective bargaining with creditors, workers, suppliers and customers; The application of moratoriums; Status quo agreements; and all legal forms applicable to the reorientation of business commitments. They have previously worked with debtors, creditors, judicial administrators, stakeholders and managers. 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.