The distribution provisions contained in the 8% Subordinated Notes Indenture shall continue in effect to the extent necessary to authorize the Subordinated Notes Indentures Trustee to receive and distribute to the Holders of Allowed 8% Subordinated Notes Claims distributions pursuant to this Plan on account of Allowed 8% Subordinated Notes Claims and shall terminate completely upon completion of all such distributions.
The Company will use its reasonable best efforts to have BancBoston execute and deliver the Note Agreement, in the capacity of a Note Holder (as defined in the Note Agreement) with respect to the 8% Convertible Subordinated Notes and the 8% Subordinated Notes held by BancBoston.
The Indebtedness evidenced by the Notes and the Guarantees shall be subordinate and junior in right of payment to Senior Debt in the manner and to the extent provided in Articles 6 and 10 and shall rank equal in right of payment to the Issuer's other 8% Subordinated Notes due March 31, 2010 (and related guarantees thereof, respectively).
The Company shall give such notice to BancBoston as shall be necessary to permit the Company to redeem at the Effective Time the 8% Convertible Subordinated Notes and the 8% Subordinated Notes held by BancBoston.
The acquisition was funded through the issuance of contingent convertible preferred stock (since converted) and the issuance to KBB of $15.7 million (reduced from its original amount of $18.0 million pursuant to its terms) in aggregate principal amount of FAO Schwarz's 8% Subordinated Notes due 2005.