How to avoid automatic loan repayment upon the change of control?

January 24, 2025
by an investor from University of Pennsylvania - The Wharton School in Claremont, CA, USA
What strategies or solutions has anybody used to navigate the issue of automatic loan repayment triggered by a change of control during a majority investment? I have an opportunity to invest growth capital in a company where I'll obtain majority ownership. The existing owner needs a large sum of capital urgently in order to capture some organic and inorganic opportunities. However, as a foreign controlling shareholder, I'm not qualified to help the company to assume the current loans or new loans in the US, which presents a challenge. Any advice or insights on how to handle this situation without giving up majority control would be greatly appreciated!
from Baylor University in Hampton, VA, USA
from University of Michigan in Detroit, MI, USA