Projections of the full impact of COVID-19 (commonly known as the coronavirus) on the economy remain extremely uncertain and continue to reflect a variety of outcomes. As a result of this uncertainty, businesses who have remaining borrowing capacity under existing loan facilities are considering whether to draw down some or all of any remaining borrowing capacity they may have under their credit facilities. Indeed, as has been widely reported, many business have already decided to do just that and draw down on all or most of any of their available borrowing capacity. For some businesses these considerations were motivated by a general fear that a run on the bank by other borrowers may cause a liquidity crisis for lenders and perhaps make funding unavailable if or when it becomes necessary.
19 Mar '20