Our Vancouver office acted for a group of lenders in connection with an amendment to existing credit facilities in favour of a tourism- and travel-focused borrower. The borrower, already having credit facilities with several lenders, including our clients, was required to obtain additional working capital relief from another lender as a result of the COVID-19 pandemic’s impact on its business. Working alongside counsel to the borrower and to the borrower’s other lenders to allow for the introduction of the new lender, we were able to navigate complex inter-lender priority issues regarding the borrower’s secured assets and help our clients retain their priority ranking against the other lenders. In addition to the various inter-lender issues, including coordination across each of the separate credit facilities, the amendment was particularly significant as it introduced several novel operational and financial covenants on the borrower resulting from COVID-19.
The team included Richard Sarabando and Shai James.