clean-up period

clean-up period
England, Wales
In acquisition finance, the period in which the borrower can remedy certain events relating to the group of companies acquired which breach the terms of the facility agreement documenting the facilities used to fund the acquisition. Broadly, such an event will not be an event of default during the clean-up period if:
• It is capable of remedy.
• Steps are being taken to remedy the relevant breach.
• The circumstances giving rise to the breach have not been procured or approved by the borrower.
Lenders usually agree to a clean-up period when financing a bid for a public limited company or in other cases when the borrower has only been able to carry out limited due diligence on the target group of companies.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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