New KBB Subordinated Note means the subordinated note in the amount of $9.9 million to be issued by the Reorganized FAO Schwarz to KBB on the Effective Date on account of the Class 5 KBB Subordinated Note Claim.
Examples of New KBB Subordinated Note in a sentence
Interest payable to the holder of a New KBB Subordinated Note will be includible in the income of such holder as ordinary income at the time such interest is received or accrued in accordance with such holder's regular method of accounting for federal income tax purposes.
The holding period for such New KBB Subordinated Note generally will begin on the day following receipt thereof pursuant to the Plan.
The New KBB Subordinated Note shall be secured by the assets of FAO Schwarz, and shall be subordinated to any liens granted pursuant to the Exit Financing Facility or any subsequent replacement financing facility, and any senior liens permitted under the terms of the Exit Financing Facility.
Such gain or loss recognized on the sale, exchange, redemption or other taxable disposition will be long-term capital gain or loss if the New KBB Subordinated Note has been held by such holder for more than one year at the time of such sale, exchange, redemption or other taxable disposition.
Payments on the New KBB Subordinated Note may only be paid if the Reorganized Debtors are current with respect to payments due to holders of Allowed Class 4 and Class 8 Claims, and further provided that the Reorganized Debtors are generally paying their post-Effective Date obligations as such obligations become due, other than claims or obligations that are subject to a bona fide dispute.