In this In Practice article Donald Lowe, Fiona Swords and Michael Leadbeater examine the rising use of liquidity tests to help parties navigate the difficult financial conditions prompted by the COVID-19 pandemic.
Often introduced at times of disruption or distress, aligning the mechanism to the particular patterns of a business' cashflow is crucial and requires careful negotiation. This article first appeared in the October 2020 edition of Butterworths Journal of International Banking and Financial Law.
