In early 2020, the International Health Regulations Emergency Committee of the World Health Organization declared the outbreak of the current novel coronavirus (also known as COVID-19), a public health emergency of global concern. First detected in the city of Wuhan in the People’s Republic of China, the coronavirus has since been detected in other countries in Asia, as well as in Europe, the Middle East and the Americas.
The long-term effects of the coronavirus outbreak are unknown, but already it has brought devastating consequences for individuals, families, communities and businesses far beyond its original epicenter in China. In addition to the immeasurable social impact, the spread of the virus since early 2020 has affected business and economic activity, global financial markets and supply chains, with ripple effects for financial reporting.
Some of the key issues clients are confronting include:
Managing and responding rapidly to ensure the wellbeing of employees, clients and visitors
Obtaining practical guidance in the face of dramatic disruptions to supply chains and related risk exposure
Identifying proactive steps to contain the impact of the virus on business and employees
Managing risks around disclosure of inside information arising as a result of coronavirus disruptions
Capital Markets, M&A, Loan Financing and Restructuring
Addressing additional due diligence requirements, disclosure, extended settlement dates or reporting deadlines, possibility of business financial stress and the need for covenant/payment relief in connection with certain industries and possible MAC (Material Adverse Change) issues
Awareness of potential issues surrounding contractual obligations, especially notice requirements and insurance coverage data privacy obligations should employees test positive for coronavirus
Business continuity planning in line with regulator guidelines
Analyzing regulatory developments regarding business interruption and related insurance coverages
To address the needs of our clients in this unfolding crisis, Mayer Brown has launched a COVID-19 Global Response Team. This dedicated, global multidisciplinary response team is able to provide a comprehensive and coordinated response to issues that our clients are facing now and may face in the near future. The Mayer Brown team is closely monitoring the situation worldwide and is equipped to respond rapidly to client inquiries while providing highly informed and well-researched answers to questions arising from the impact of the coronavirus.
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