Select Page

A status quo agreement between a lender and a borrower may also exist when the lender stops requiring a planned interest or capital payment for a loan to give the borrower time to restructure its debts. In 2019, video game distributor GameStop signed a status quo agreement with a group of investors who wanted changes in corporate governance, believing that the company had intrinsic value when the share price reflected. The agreement is particularly relevant because the bidder would have access to the confidential financial information of the entity concerned. After receiving the commitment of the potential purchaser, the target entity has more time to set up additional defence facilities for the acquisition. In some situations, the target entity agrees to repurchase shares of the target with a premium in return for the potential purchaser. The new delegation obtained only trivial changes to the previous draft agreement. [12] It established that all subsequent agreements and administrative arrangements between the British Crown and Nizam would be maintained with the Indian government. These include defence, foreign affairs and communication (the three themes that are normally addressed in the accession instrument). The agents would be exchanged between Hyderabad and India. The Indian government has agreed to relinquish the functions of the supreme government. The status quo agreement is expected to remain in effect for a one-year period. [13] The agreement was signed by Nizam on November 29, 1947. [14] The agreement is particularly important insofar as the bidder has had access to the confidential financial information of the entity concerned.

It is significant that the agreement did not provide for the Dominion of India to deploy Indian troops to the state, while British India had maintained several cantons, 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 Over the next six months, Indian troops were withdrawn from the state.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] Hyderabad violated all the terms of the agreement: in foreign affairs, by carrying out intrigues with Pakistan, to which it secretly lent 15 million pounds; in defence, by building a large semi-military army; communication, through interventions in border traffic and transit traffic of Indian railways. [18] India has also been accused of violating the agreement by imposing an economic blockade.