Examples of Debt Disposal in a sentence
Subject to Clause 16.4 (Fair Value), Clause 16.5 (Other Restrictions), Clause 16.6 (Restriction on Distressed Disposals – Second Lien Creditors), Clause 16.7 (Restriction on Distressed Disposals – Unsecured Notes Creditors) and Clause 18.5 (Security Agent Protection), a Distressed Disposal or a Debt Disposal may be made in whole or in part for consideration inthe form of cash or, if not for cash, for Non-Cash Consideration which is acceptable to the Security Agent.
The net proceeds of each Distressed Disposal and each Debt Disposal shall be paid, or distributed, to the Common Security Agent for application in accordance with Clause 19 (Application of proceeds) and, to the extent that any Liabilities Sale has occurred, as if that Liabilities Sale had not occurred.
No Distressed Disposal or Debt Disposal may be made in whole or part for Non-Cash Consideration if the Security Agent has reasonable grounds for believing that its receiving, distributing, holding, managing, exploiting, collecting, realising or disposing of that Non-Cash Consideration would have an adverse effect on it.
Debt Disposal means any disposal of any Liabilities or Debtors’ Intra-Group Receivables pursuant to paragraphs (d) or (e) of Clause 12.1 (Facilitation of Distressed Disposals).
No Distressed Disposal or Debt Disposal may be made for Non-Cash Consideration unless the prior consent of the Instructing Group (acting in accordance with the Enforcement Principles) is obtained.