Insolvency Trigger for Events of Default Clauses

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Description:

Model clauses for Events of Default in relation to the insolvency / winding up / bankruptcy of the counterparty. This is drafted in strict terms and maybe triggered early.

Any of the following occurs in respect of any member of the Group:

(a) it is, or is deemed for the purposes of any law to be, unable to pay its debts as they fall due or insolvent;

(b) it admits its inability to pay its debts as they fall due;

(c) the value of its assets is less than its liabilities (taking into account contingent and prospective liabilities)

(d) it suspends making payments on any of its debts or announces an intention to do so;

(e) by reason of actual or anticipated financial difficulties, it commences negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness; or

(f) a moratorium is declared in respect of any of its indebtedness.

If a moratorium occurs in respect of any member of the Group, the ending of the moratorium of itself will not remedy any event of default caused by the moratorium.

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Model clauses for Events of Default in relation to the insolvency / winding up / bankruptcy of the counterparty.

This is drafted in strict terms and maybe triggered early.

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Document Type:

Checklist / guideline / manual / policy / procedures

Category:

Business > Corporate > Insolvency, Liquidation and Winding Up

 
Keywords:

events of default

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trigger

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insolvency trigger

,  

bankruptcy

,  

winding up

,  

pay debts

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DocPro Legal

DocPro Legal is a team of legal professionals with a passion for making quality documents and legal contract templates widely available to the public through cutting edge technology. Our lawyers are qualified in numerous common law jurisdictions including the United Kingdom, Australia, New Zealand, India, Singapore and Hong Kong. We have experience in major law firms and international banks with expertise in business, commercial, finance, banking, litigation, family, succession and company laws.