Can we pause the offering?
The contract does not provide for a formal pause status. A temporary interruption therefore does not terminate the contract or automatically suspend the ongoing contractual obligations.
If the project is merely interrupted, the monthly Project Management Fee generally continues to apply. It ends only upon the contractually defined completion of the financing, i.e. when the accepted financing amount is paid out.
What are the alternatives to pausing the project?
Alternatively, the project may be cancelled. In this case, the contractual provisions regarding the withdrawal fee and, where applicable, any other fees already accrued will apply.
In practice, this means that either the Project Management Fee continues during the interruption, or the project is cancelled and the contractual provisions regarding the withdrawal fee apply. There is no cost-free pause status.
What happens if the project is resumed later?
If the project is resumed at a later date, the due diligence documentation will generally need to be updated. This is because various documents are subject to requirements regarding how recent they must be.
This may include, for example:
- criminal record certificates
- current management accounts or financial evaluations
- commercial register extracts or comparable register documents
Please discuss any planned interruption with your Financing Manager as early as possible so that the impact on the timeline, documentation and costs can be clarified in advance.