Examples of Exit Backstop Parties in a sentence
No Entity (other than the Consenting Lenders, the DIP Agent, the DIP Lenders, the DIP Backstop Parties and the Exit Backstop Parties) may rely on the absence of a specific reference in the Plan, the Plan Supplement (including the Schedule of Retained Causes of Action), or the Disclosure Statement to any Cause of Action against it as any indication that the Debtors or the Reorganized Debtors, as applicable, will not pursue any and all available Causes of Action of the Debtors against it.
For the avoidance of doubt, the Debtors and the Reorganized Debtors do not reserve any Causes of Action or Litigation Claims that have been expressly released (including, for the avoidance of doubt, Claims against the Consenting Lenders, the DIP Agent, the DIP Lenders, the DIP Backstop Parties and the Exit Backstop Parties and Claims otherwise released pursuant to the Debtor Releases provided in Article X.B and the Exculpation contained in Article X.E of this Plan).
Any unsubscribed portion of the Exit Term Loans shall be allocated to the Exit Backstop Parties in accordance with their rights.
Under this heading two justifications are offered for government financing of higher education.
The First Lien Exit Facility will be in form and substance acceptable to the Company, the Required First Lien Lenders and Required Exit Backstop Parties (as defined herein) and will have the following terms, among others: ● Interest Rate: L + 8.00% (LIBOR floor of 1.50%), payable in cash.
To the extent a Holder of an Allowed DIP Claim does not elect to convert its DIP Claim into First-Out Exit Term Loans, such Holder shall have its DIP Claim paid in full in Cash, and to the extent such non-converting Holder does not otherwise fund in Cash its Pro Rata share of First-Out Exit Term Loans, any resulting deficit will be backstopped by the Exit Backstop Parties.
Customary for exit financings of this type to be included in a customary securities purchase agreement to be executed among the Issuer, the Guarantors, the Exit Backstop Parties and any other purchasers of Exit Senior Unsecured Notes at the time of initial issuance.
The Exit Backstop Parties also require prior assurance that the economic value of their negotiated rights with respect to the Company’s post-emergence capital structure will be preserved through payment of a customary Termination Payment (as defined below) if a different exit financing facility, plan, or restructuring is ultimately confirmed or consummated.
In addition, the Debtors’ obligation to pay a Termination Payment upon the occurrence of an Termination Payment Event, including due to the confirmation of an alternative plan or the provision of exit financing by parties other than Barclays, the Exit Backstop Parties, or the Exit Facility Lenders should be approved under section 503(b) of the Bankruptcy Code as necessary to preserve the value of the Debtors’ estates.38.
KLBS filled two motions for compensation, one in October 2019 and one in March 2021 and the Court entered orders approving compensation.