Stand Still Agreement

It is significant that the agreement did not provide for the Dominion of India to deploy Indian forces in the state, while British India had maintained various townships, notably in Secunderabad, as part of its ”subsidiary alliance” with the state. Over the next six months, Indian troops were withdrawn from the state. [15] The concept of standstill agreement refers to different forms of agreements that companies may enter into in order to delay measures that might otherwise take place. The state of Jammu and Kashmir, which joined both India and Pakistan, decided to remain independent. She proposed to sign status quo agreements with the two gentlemen. Pakistan immediately agreed, but India requested further discussions. At the international level, it may be an agreement between countries to maintain current facts, in which a liability owed to each other is suspended for a specified period. A status quo agreement can be reached between governments for better governance. In the banking world, a status quo agreement between a lender and a borrower terminates the contractual repayment plan of a borrower in difficulty and forces the borrower to take certain steps that the borrower must take. A status quo agreement can be used between a lender and a borrower.

The borrower has time to restructure his debts. On the other hand, the lender provides for a certain moratorium on the payment of interest or loan interest. Another type of standstill agreement is in place when two or more parties agree not to deal with other parties on a given issue for a given period of time. For example, as part of a merger or acquisition negotiation of target buyers and potential buyers, they may agree not to solicit or participate in acquisitions with other parties. The agreement strengthens the parties` incentives to invest in negotiation and due diligence, while respecting their own potential agreement. A status quo agreement may also exist between a lender and a borrower if the lender stops requiring a planned payment of interest or principal for a loan, in order to give the borrower time to restructure their debts. Common shareholders tend not to like status quo agreements because they limit their potential returns from an acquisition. Glencore plc, a Swiss-based commodity trader, and Bunge Ltd., a US agricultural commodities trader, is a recent example of two companies that have signed such an agreement. In May 2017, Glencore undertook an informal approach to buy Bunge. . .

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