Clients typically have a general understanding of what steps have to happen in what order in a deal. Sometimes, though, when that general understanding gets translated into specific words, things don’t always match up. Recently, the folks handling a $1.3 billion loan transaction for Chesapeake Energy ended up with words that didn’t match their expectations.
When we plan for things like advance notice or deadlines, pulling out the calendar seems like overkill. But clarity is important to avoid confusion. Many of the provisions I draft use a single trigger date from which to measure the following obligations as a way to avoid mismatched definitions in the first place. – Rick Colosimo