Economic Benefits of Consolidation Sample Clauses

Economic Benefits of Consolidation. A factor frequently considered by courts is the potential profitability of consolidating the debtor and its related entities. See, e.g., In re Vecco Constr. htdus., Inc., 4 B.R. at 410. Consolidation has been granted where it improved the debtor's chances for a successful financial reorganization. See, e.g., In re Xxxx Coip., 129 B.R. at 414-15 (citing In re X.X. Xxxxx & Co., Inc., 23 B.R. 569, 572 (Bankr. E.D. Pa. 1982)).
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Economic Benefits of Consolidation. A factor frequently considered by courts is the potential “benefit to creditors or the bankruptcy estate” of consolidating the debtor and its entities, e.g., In re Vecco Construction Indus. Inc., 4 B.R. 407, 410 (Bankr. E.D. Va. 1980). As discussed above, consolidation has been granted in some cases in part because it improved a debtor's chances for a successful financial reorganization. EXHIBIT X-000 Application of the Factors Courts generally agree that the central inquiry in evaluating a motion for substantive consolidation should be whether the economic prejudice resulting from continued recognition of the entities' separateness outweighs the economic prejudice that would be caused by the entities' consolidation. E.g., Eastgroup, 935 F.2d at 249 (quoting Xxxxxx Bros., 18 B.R. at 234). No single factor is likely to be determinative, nor is a particular combination always decisive. Not all of the factors favoring consolidation need be present in order to justify consolidation. E.g., Xxxx, 129 B.R. at 415. Implicit in substantive consolidation analysis is the general assumption that creditors will deal with apparently separate entities as separate, and therefore should be entitled to rely on their separateness. The standards upon which substantive consolidation is determined varies among the circuit courts. A number of reported cases have relied on a recitation of some subset of the foregoing factors, and performed a case-by-case application to the relevant facts. See, e.g., Vecco Construction, 4 B.R. at 410. Generally in these cases consolidation has been regarded as an extraordinary remedy, putting the burden on the proponent of consolidation to prove that the benefits would outweigh any resulting prejudice. Augie/Xxxxxxx, 860 F.2d at 518; Xxxxxx Bros., 18 B.R. at 238. Three circuits have articulated similar, but not identical, standards of proof for substantive consolidation analysis; no single approach has been embraced as the determinative test. See Xxxxxxx Xxxxxxx, Redefining into Reality: Substantive Consolidation of Parent Corporations and Subsidiaries, 24 Emory Bankr. Developments J. 469, 486 (Spring 2008).
Economic Benefits of Consolidation. A factor frequently considered by courts is the potential “benefit to creditors or the bankruptcy estate” of consolidating the debtor and its entities, e.g., In re Vecco Construction Indus. Inc., 4 B.R. 407, 41...

Related to Economic Benefits of Consolidation

  • Evidence of Consolidation, Etc to Trustee. The Trustee, subject to the provisions of Section 7.01, may receive an Opinion of Counsel as conclusive evidence that any such consolidation, merger, sale, conveyance, transfer or other disposition, and any such assumption, comply with the provisions of this Article.

  • Merger and Consolidation The Company will not consolidate with or merge with or into, or convey, transfer or lease all or substantially all its assets to, any Person, unless:

  • Merger, Consolidation, Etc The Company will not consolidate with or merge with any other Person or convey, transfer or lease all or substantially all of its assets in a single transaction or series of transactions to any Person unless:

  • Adjustment Due to Merger, Consolidation, Etc If, at any time when this Note is issued and outstanding and prior to conversion of all of the Notes, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower, then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Note been converted in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section 1.6(b) unless (a) it first gives, to the extent practicable, thirty (30) days prior written notice (but in any event at least fifteen (15) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Section 1.6(b). The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges.

  • Effect of Recapitalizations, Reclassifications and Changes of the Common Stock (a) In the case of:

  • Reclassification, Consolidation, Merger, etc In case of any reclassification or change of the outstanding shares of Common Stock (other than a change in par value to no par value, or from no par value to par value, or as a result of a subdivision or combination), or in the case of any consolidation of the Company with, or merger of the Company into, another corporation (other than a consolidation or merger in which the Company is the surviving corporation and which does not result in any reclassification or change of the outstanding shares of Common Stock, except a change as a result of a subdivision or combination of such shares or a change in par value, as aforesaid), or in the case of a sale or conveyance to another corporation of the property of the Company as an entirety, the Holders shall thereafter have the right to purchase the kind and number of shares of stock and other securities and property receivable upon such reclassification, change, consolidation, merger, sale or conveyance as if the Holders were the owners of the shares of Common Stock underlying the Warrants immediately prior to any such events at a price equal to the product of (x) the number of shares issuable upon exercise of the Warrants and (y) the Exercise Price in effect immediately prior to the record date for such reclassification, change, consolidation, merger, sale or conveyance as if such Holders had exercised the Warrants.

  • ROOM CONSOLIDATION Residence assignments shall be consolidated when vacancies occur in any residence facility, to minimize the number of rooms, suites, and/or apartments not at full occupancy. The Student may be required to change residence assignment and move to facilitate room consolidation. Residents in rooms/apartments/suites not at full capacity may be charged additional rent as determined by UCF DHRL.

  • Reclassification, Reorganization and Consolidation In case of any reclassification, capital reorganization, or change in the capital stock of the Company (other than as a result of a subdivision, combination, or stock dividend provided for in Section 5.1 above), then the Company shall make appropriate provision so that the Holder shall have the right at any time prior to the expiration of this Warrant to purchase, at a total price equal to that payable upon the exercise of this Warrant, the kind and amount of shares of stock and other securities and property receivable in connection with such reclassification, reorganization, or change by a holder of the same number of shares of Common Stock as were purchasable by the Holder immediately prior to such reclassification, reorganization, or change. In any such case appropriate provisions shall be made with respect to the rights and interest of the Holder so that the provisions hereof shall thereafter be applicable with respect to any shares of stock or other securities and property deliverable upon exercise hereof, and appropriate adjustments shall be made to the purchase price per Warrant Share payable hereunder, provided the aggregate purchase price shall remain the same.

  • Merger and Consolidation Conversion 18 Section 4. Reorganization...........................................................................................19 Section 5. Amendments...............................................................................................19 Section 6. Filing of Copies, References, Headings...................................................................19 Section 7.

  • Merger, Consolidation The Borrower will not, and will not permit or cause any of its Subsidiaries to, liquidate, wind up or dissolve, or enter into any consolidation, merger or other combination, or agree to do any of the foregoing; provided, however, that:

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