Redrawing the rules of a loan agreement: how to go about it (TT Sep09 p28-29)

In the current difficult economic conditions, some borrowers are finding themselves at risk of breaching covenants or other conditions of their loan agreements, and are approaching their lending syndicates to request an amendment or waiver. Dealing with these requests can be a time-consuming and complex process, and requires prompt and efficient action from all parties involved. With Loan Market Association (LMA) members spending ever more time dealing with these requests, the LMA board has produced a set of guidelines to set out best practice and explain what each party may reasonably be expected to do.