standstill agreement

A "standstill agreement" is a strategic tool used to pause or delay certain actions, often in legal, business, or financial contexts, to facilitate negotiation or prevent escalation.

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Definition

C1Corporate and Mergers & Acquisitions

(business, formal)A contract that prevents shareholders or potential buyers from taking specific actions, such as buying more shares or announcing a bid, to manage takeover attempts or negotiations.

Example

  • The company entered into a standstill agreement to fend off a hostile takeover.

C1Litigation and Disputes

(legal, formal)An agreement to pause legal proceedings or extend deadlines, giving parties more time to negotiate or comply with protocols.

Example

  • The parties signed a standstill agreement to avoid litigation and seek a settlement.

C1Debt Restructuring

(finance, formal)An arrangement where creditors agree not to enforce debt collection for a certain period, allowing the debtor to reorganize finances.

Example

  • The debtor negotiated a standstill agreement to restructure its debts without immediate pressure from creditors.

Similar

Terms that have similar or relatively close meanings to "standstill agreement":

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