Eligible Fixed Asset definition
Examples of Eligible Fixed Asset in a sentence
After the Closing Date, (i) no real property or warehouse space shall be leased or acquired by any Credit Party, (ii) no Eligible Fixed Asset shall be located on real property or in warehouse space, and (iii) no Inventory shall be shipped to a processor or converter under arrangements established after the Closing Date, unless and until, in each case, a satisfactory landlord agreement or bailee letter, as appropriate, shall first have been obtained with respect to such location.
The Borrower shall have the right at any time upon three (3) Business Days' prior written notice to the Agent to reduce the Eligible Fixed Asset Cap to $0 if, after giving effect to such reduction, the sum of the Revolving Credit Loans, the Maximum Drawing Amount and all Unpaid Reimbursement Obligations does not exceed the Borrowing Base EXCLUDING the lesser of 48.9% Eligible Fixed Assets and the Eligible Fixed Asset Cap immediately prior to such reduction.
If on any date on or prior to September 30, 2001 the Eligible Fixed Asset Cap is reduced to $0 in accordance with Section 3.2(b) of the Credit Agreement, Amendment Fee 2 shall be forgiven on such date.
To the extent that any Eligible Fixed Asset is encumbered by a lien or encumbrance which is a Permitted Lien not securing the Obligations, the amount of the Indebtedness secured by such lien or encumbrance shall be deducted from the value determined in accordance with the immediately preceding sentence of this definition of the term "Determined Value".
After the Effective Date, (i) no real property or warehouse space shall be leased or acquired by any Credit Party, (ii) no Eligible Fixed Asset shall be located on real property or in warehouse space, and (iii) no Inventory shall be shipped to a processor or converter under arrangements established after the Effective Date, unless and until, in each case, a satisfactory landlord agreement or bailee letter, as appropriate, shall first have been obtained with respect to such location.
For purposes of this Section 4.1., Eligible Fixed Asset Collateral shall be valued at fair market value pursuant to one or more Appraisals.
If on any date on or prior to September 30, 2001 the Eligible Fixed Asset Cap is reduced to $0 in accordance with Section 2.11 of the Credit Agreement, Amendment Fee 2 shall be forgiven on such date.
With respect to the Borrower and its Subsidiaries for any Reference Period, the sum of (a) cash interest expense for such Reference Period, plus (b) all scheduled principal payments for such Reference Period, (exclusive of all amortization of the Eligible Fixed Asset Component and the Special Inventory Advance during such period).
As security for the full and timely payment and performance of the Obligations, upon the occurrence of a Security Event, the Borrower will immediately grant, and/or shall cause one or more of the Subsidiaries of the Borrower to grant, to the Administrative Agent, for the ratable benefit of the Lenders, a first-priority Lien in Eligible Fixed Asset Collateral having a value of up to $50,000,000.