A standstill agreement may also exist between a lender and a borrower if the lender ceases to require a planned payment of interest or principal on a loan to give the borrower time to restructure its liabilities. In other areas of activity, a standstill agreement can be virtually any agreement between the parties in which both agree to suspend the case for a period of time. This could be an agreement to defer payments intended to help a company survive difficult market conditions, agreements to stop producing a product, agreements between governments, or many other types of agreements. A recent example of two companies that have signed such an agreement is Glencore plc, a Swiss-based commodity trader, and Bunge Ltd., an agricultural commodities trader in the United States. In May 2017, Glencore took an informal approach to buying rubber bands. Shortly thereafter, the parties agreed to a standstill agreement that prevents Glencore from accumulating shares or making a formal offer of rubber band until a later date. During the standstill period, a new agreement is negotiated, which usually changes the initial repayment schedule of the loan. This is used as an alternative to bankruptcy or foreclosure if the borrower is unable to repay the loan. The standstill agreement allows the lender to recover a portion of the value of the loan. In case of foreclosure, the lender may not receive anything. By working with the borrower, the lender can improve their chances of getting a portion of the outstanding debt back. The agreement gives the target company more control over the transaction process by requiring the bidder or investor to be able to buy or sell the company`s shares or launch proxy contests. In the German metallurgical and electrical industry, a collective agreement was reached early Tuesday morning.
In addition to the pilot contract for the metallurgical and electrical industry in southwestern Germany, the employers and IG Metall have also negotiated a collective agreement for temporary workers throughout the German electrical and metallurgical industry. The collective agreement was fiercely challenged. In recent weeks, IG Metall has launched a series of warning strikes to consider its initial demand for a 6% wage increase. The new agreement will enter into force on 1 November 2012 and expire in 2017. It should also serve as a pilot agreement for other sectors. In June 2012, for example, VGZ and the Mining, Chemical and Energy Union (IG BCE) reached a similar agreement for temporary workers in chemical companies. The chemical agreement has the same duration as the metallurgical industry and the surcharges are also paid in five stages. However, the scale ranges from 15% to 50% for salary levels 1 and 2 and from 10 to 35% for salary groups 3 to 5. . .