This chapter explores the importance of strong J.K.R.U. blockers and the limited capacity for restricted payment and permitted investments. It discusses the deterioration of blockers in loan documents, ways to circumvent the blocker, and the necessity of stronger formulations to prevent loopholes.
Lenders tend to feel reassured knowing their docs have a J Crew blocker, but not all J Crew blockers offer the protection they might expect.
For this week’s episode of our podcast, Alice Holian and Olivia Mantock cover the ins and outs of J Crew blockers and run through some novel formulations they’ve seen in 2023.
Is the ‘Dechra standard’ going to take off? Or will blockers become increasingly limited in scope?