Recorded Webinar: Ipso Facto Insolvency Reforms and Managing Insolvency Risks in Commercial Contracts

Most commercial contracts have traditionally included ipso facto clause. They allow a party to terminate or modify the operation of a contract upon the occurrence of an insolvency event. However, the sweeping reforms introduced last year have meant many clients will no longer be able to rely or enforce ipso facto clauses. This major reform, and the effect it has on commercial contracts, will be discussed in this session, including:

• The role of ipso facto clauses

• What contracts does the ipso facto stay apply to?

• Overview of the key changes

• Restrictions on the enforcement of ipso facto rights: In what circumstances will they apply?

• Exemptions to the ipso facto stay

• How can clients prepare for scenarios where ipso facto clauses cannot be enforced?

• Is now the time to vary or extend existing agreements?

• Managing insolvency risk - reviewing the security, insolvency, breach, termination and set-off provisions in clients’ contracts

• Grey areas, and practical issues or difficulties arising with the reforms