The State's right to terminate the Project Deed is subject to the Finance Direct Deed which sets out the Financiers' maximum Cure period and the Financiers' rights (independent of Project Co's rights) to Cure any Major Default or Default Termination Event. The Finance Direct Deed provides for a similar cure regime to Project Co's under the Project Deed, including:
• Financiers providing the State with a Cure program;
• an obligation to diligently pursue any Cure program;
• the right to request a single extension of any cure period, which the State may not unreasonably refuse; and
• extensions to the Financiers' maximum Cure period in limited circumstances.
The Financiers' Cure regime is designed to limit both the number of extensions and the grounds on which an extension may be requested by the Financiers in respect of any unremedied Major Default or Default Termination Event. Accordingly, Financiers do not have an open-ended right to seek extensions or to delay the State's rights to step-in or terminate the Project Deed, and the State has the certainty that after a finite period, it will be entitled to exercise those rights.