Common Contracts

Forbearance Agreements: A Refuge for Creditors and Lenders During the Pandemic

May 6th, 2020

• Filed
  May 6th, 2020

Many businesses in Alberta had been facing difficult financial circumstances prior to the onset of the COVID-19 pandemic. Over the past few weeks, the business environment has deteriorated, and remains uncertain at best. All aspects of business, including operational expenses, completion of contracts, cash flow requirements and business/asset valuations are likely affected. As a result, the ability of many to make required payments, meet margin or other financial covenants, and satisfy other contractual obligations has likely been compromised to some degree. Creditors’ businesses are being equally affected