Sign of the Times: Insolvency Clauses Come the Fore in Stock PUrchase Agreements

For some time a buyer attempting to bust a signed leveraged buyout agreement would rely on the Material Adverse Change Clause, now buyers are relying on insolvency clauses.  In the Bell Canada buyout the buyers are claiming that a buyout would result in an insolvent company, triggering walk rights in the buyout agreement.  Insolvency clauses are a bit more poignant that MAC clauses, and we will see whether courts are more tolerant of the excuse than they are of MAC clauses.