Common "Tripping Points" For Companies Experiencing
Financial Difficulty.
Commercial Contracts
COVID-19 and the resulting economic downturn is causing
financial difficulties for many companies with the result that they
are at risk of being in default under certain of their commercial
contracts. Key commercial contracts typically include property and
equipment leases, supply and sourcing agreements, licensing and IP
agreements and franchise agreements.
Assessing Key Contracts
Companies should review key contracts to assess whether they or
their counterparties are at risk of default under any of these
agreements with the goal of understanding the following:
- What obligations is the Company required to perform?
