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Buyers question whether coronavirus triggers MAC clauses

Mar 12, 2020 - Private Equity Manager

The coronavirus pandemic is spurring some private equity firms to assess whether the issue qualifies as a material adverse change, a law firm has warned.

Speaking in a webinar on Thursday, Tim Blakely, a Hong Kong-based managing partner at law firm Morrison & Foerster , said clients had sought assistance in understanding whether MAC clauses - which can relieve buyers of an obligation to honor a deal - had been triggered by the virus.

"[They're asking] either because they're ...