What Do You Mean By Standstill Agreement

In banking, a status quo agreement between a lender and a borrower terminates the contractual repayment plan of a struggling borrower and imposes certain steps that the borrower must take. A recent example of two companies that have signed such an agreement is Glencore plc, a Commodities trader based in Switzerland, and Bunge Ltd, an American agricultural commodities trader. In May 2017, Glencore took an informal step to buy Bunge. Shortly thereafter, the parties agreed to a status quo agreement that prevents Glencore from accumulating shares or making a formal offer for Bunge until a later date. The state of Jammu and Kashmir, bordering India and Pakistan, has decided to remain independent. She offered to sign status quo agreements with both gentlemen. Pakistan immediately agreed, but India called for further talks. In other areas of activity, a status quo agreement can be virtually any agreement between the parties, in which both parties agree to discontinue the case for a specified period of time. This may include an agreement to defer payments to help a company in difficult market conditions, agreements to stop the production of a product, agreements between governments or many other types of agreements. Both draft treaties were submitted to the House on 25 July. A state negotiating committee was formed, which reviewed the two agreements, consisting of ten leaders and twelve ministers. After discussion, the Committee finalized the two draft agreements on 31 July.

[3] A status quo agreement may also exist between a lender and a borrower if the lender stops requiring a planned interest or capital payment for a loan in order to give the borrower time to restructure its debts. On 15 August, the State of Junagadh implemented the accession instrument and the status quo agreement with Pakistan. It was adopted by Pakistan on 13 September. [5] Junagadh was the only state to declare membership in Pakistan until 15 August. [6] A status quo agreement is a form of anti-care measure. Hyderabad violated all the terms of the agreement: in foreign affairs, by carrying out intrigues with Pakistan, to which it had secretly lent 15 million pounds; in defence, by building a large semi-military army; communication, through interventions in border traffic and transit traffic of Indian railways. [18] India has also been accused of violating the agreement by imposing an economic blockade. It turns out that the State of Bombay unknowingly intervened from Delhi in deliveries to Hyderabad. The government has promised to take it with the provincial governments, but scholar Lucien Benichou says it has never been done. India also delayed India`s arms deliveries to Hyderabad, which was later de affirmed as a violation of the status quo agreement. [19] It is significant that the agreement did not provide for the Dominion of India to deploy Indian troops to the state, while British India had maintained several cantons, notably in Secunderabad, as part of its “subsidiary alliance” with the state. Over the next six months, Indian troops were withdrawn from the state.

[15] A status quo agreement can be reached between governments for better governance. A status quo agreement can be reached between a lender and a borrower. It gives the borrower time to restructure its debts. On the other hand, the lender provides for a certain moratorium on the payment of interest or principal loans. A status quo agreement between a bank and a borrower operates in lines similar to those shown above. It suspends the contractual repayment plan of a stressed borrower and imposes certain conditions on the borrower. Soon the Nizams found themselves under pressure from Majlis-e-Ittehadul Muslimeen (Ittehad), the Muslim nationalist party that was active in the state and withdrew from the agreement. [8] On the morning of 27 October, Qasim Rizvi, the leader of Ittehad, organized a massive demonstration by several thousand activists to block the delegation`s withdrawal.

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