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ARTICLE · 06 NOVEMBER 2025

Cyber Risk And Debt Facilities: Practical Considerations For Borrowers

Addleshaw Goddard
Addleshaw Goddard
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Addleshaw Goddard

Addleshaw Goddard

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Cyberattacks are an increasing threat to UK businesses, with serious implications for borrowers with debt facilities.

United KingdomCorporate/Commercial Law

Cyberattacks are an increasing threat to UK businesses, with serious implications for borrowers with debt facilities. A cyber incident could lead to loan defaults and disrupt access to funding. To protect your business, review your loan documentation, ensure your cyber risk plans are up to date, and agree a clear strategy with your board and lenders before an incident occurs. Proactive communication and preparation are vital to maintaining financial stability during a crisis.

Recent cyberattacks on major UK companies have shown just how quickly a digital incident can disrupt day-to-day operations and create financial and contractual challenges. As these threats become more common, it's important for borrowers to keep their debt documentation and risk management plans up to date. Below, we highlight the main legal risks that can arise after a cyber incident and offer practical steps to help you manage and reduce these risks.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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