What Is A Backstop Agreement

make the transaction more attractive to the target company and increase the stakes for the competition. What is the big picture behind the Brexit backstop drama? Prime Minister Boris Johnson said he was determined to “get rid of” the backstop, calling it “undemocratic”. In the case of Chapter 11 Dana Corp., for example, the debtor entered into agreements with its syndicates and a financial sponsor for exit financing. Under these agreements, the financial proponent would support an offer of rights for new preferred shares, which would include, among other things, approval fees for certain transactions. To make its corporate governance manageable, Dana had to limit the final number of new preferred shareholders. .