Journal of Corporate Law Studies ( IF 1.093 ) Pub Date : 2020-07-23 , DOI: 10.1080/14735970.2020.1781484 Narine Lalafaryan 1, 2
ABSTRACT
Material Adverse Change/Effect (‘MAC') has become an important yet chaotic legal concept. With its vague definition and multi-functional objectives on the one hand, and dramatic consequences arising from the instability of the global financial system, terrorism, Brexit, and COVID-19 on the other hand, the significance of MAC has grown. The article analyses the uncertainty surrounding MAC under English law, critically investigating MAC and its future in debt finance and M&A following Delaware’s ground-breaking decision in Akorn v Fresenius and the more recent decision in Channel Medsystems v Boston Scientific. The article argues (i) for a growing ex-ante and ex-post practical importance of MAC; (ii) that Delaware MAC principles could be a relevant reference for resolving English MAC uncertainties, provided one considers the specifics of MAC, in both jurisdictions, and in M&A and debt finance; and (iii) that there is no overarching model for correctly applying MAC, in debt finance or M&A.
中文翻译:
重大不利变化的不确定性:如果不是企业生命,就要付出巨额财富
抽象的
重大不利变化/影响('MAC')已成为重要但混乱的法律概念。一方面,由于其模糊的定义和多功能的目标,以及由于全球金融体系的不稳定性,恐怖主义,英国脱欧和COVID-19所带来的巨大后果,MAC的重要性日益增强。本文分析了英国法律下MAC的不确定性,在特拉华州在Akorn诉Fresenius案中开创性的裁决以及Channel Medsystems诉Boston Scientific案中的最新裁决之后,对MAC及其在债务融资和并购中的未来进行了严谨的调查。文章认为(i)事前和事后的增长MAC的实际重要性;(ii)特拉华州MAC原则可以作为解决英语MAC不确定性的重要参考,前提是要考虑两个司法管辖区以及并购和债务融资中MAC的具体情况;(iii)在债务融资或并购中没有正确应用MAC的总体模型。