Merger Without Assumption - ISDA Provision: Difference between revisions

Merger Without Assumption - ISDA Provision (view source)

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 Your correspondent is not one of these people, and has little more to say about mergers, except that what happens to live contracts at the time of such chicanery will depend a lot on just how the companies and their assets are being joined or torn assunder.
-If the {{isdama}} and its extant {{isdaprov|Transactions}} carry across — which in a plain [[merger]], they ought to — all well and good <ref>Though watch out for traps: what if ''both'' merging companies have {{isda}}s with the same counterparty, but on markedly different terms? Which prevails? Do they both? Which one do you use for new {{isdaprov|Transaction}}s? This you will have to hammer out across the negotiating table.</ref>
+If the {{isdama}} and its extant {{isdaprov|Transactions}} carry across — which in a plain [[merger]], they ought to — all well and good.<ref>Though watch out for traps: what if ''both'' merging companies have {{isda}}s with the same counterparty, but on markedly different terms? Which prevails? Do they both? Which one do you use for new {{isdaprov|Transaction}}s? This you will have to hammer out across the negotiating table.</ref>
 But in some cases the Transactions might not carry across. Perhaps the resulting entity has no [[Ultra vires|power]] to transact swaps. Perhaps it is in a jurisdiction in which that cannot be enforced. Perhaps it just refuses to honour them. {{isdaprov|Merger Without Assumption}} addresses that contingency.