Within a matter of weeks, many of the world’s strongest borrowers experienced a sudden and considerable drop in revenue as employees and consumers complied with various quarantine measures across the country and around the world. This decrease in revenue created short-term liquidity crises for otherwise healthy borrowers with the result that many have begun to fully draw down under existing revolving facilities, request emergency liquidity facilities and seek amendments and waivers under current credit facilities. Exacerbating matters, lenders (many of whom are working from home and experiencing their own operational hurdles) are receiving these requests en masse and are expected to satisfy them promptly.
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