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6 The purpose of the Senior Funders' Direct Agreement is to provide rights for the Senior Funders to step-in and manage the project where otherwise the right and obligation of Project Co to perform the project would terminate. The Senior Funders require this right because their preferred approach will generally be to keep the project alive and preserve the project's income stream, rather than allowing the Agreement to terminate, as this represents the Senior Funders' best chance of being fully repaid.
The Senior Funders' Direct Agreement sets out arrangements whereby the effect of any notice of termination issued by the Board will be suspended and the Senior Funders will have a specified period to put into place alternative contractors to perform the project. Key issues will include the length of the suspensory period and the liability (if any) the Senior Funders will incur while trying to save the project.