KEY RISKS FOR UPSTREAM LENDERS
• Change of control in a Contractor requires prior CNH consent – this impacts the enforceability of share security over Contractor borrower
o Not uncommon - authorities typically insist on approval rights for changes to ownership structures to Contractor persons o This mirrors the restrictions on assignments of the PSC
• Termination of the PSC
o Certain “ Administrative Rescission ” termination events are potentially wider than typically found in other jurisdictions and extend to potentially non-fundamental defaults o Contractor members are jointly and severally liable under the PSC – breach by one member gives rise to a termination of the entire PSC
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