PIK Debt definition

PIK Debt means Subordinated Indebtedness the interest of which is not permitted to be paid in cash but instead must be paid in kind by capitalizing such interest and adding it to the principal balance of such Subordinated Indebtedness.

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PIK Debt means, collectively, any Indebtedness, the interest of which is not permitted to be paid in cash but instead must be paid in kind by capitalizing such interest and adding it to the principal balance of such Indebtedness and such interest added to the principal balance of such Indebtedness.

PIK Debt means all present and future moneys, debts and liabilities due, owing or incurred by the Company to any Finance Party under or in connection with any PIK Finance Document or PIK Document (in each case, whether alone or jointly, or jointly and severally, with any other person, whether actually or contingently, and whether as principal, surety or otherwise), together with any related Additional Debt.

Examples of PIK Debt in a sentence

Provided the Senior Secured Debt is not in default, cash interest will be payable on the Unsecured PIK Notes and on accrued unpaid interest following repayment in full of the Secured PIK Debt.
Subject to the Voting Requirements, certain other unsecured creditors identified by PSC (as may be agreed by the Lenders in their sole discretion) ("Impaired Unsecured Claims") shall have their claims exchanged for a pro rata share of (a) up to $60 million in unsecured payment in kind notes (the "Unsecured PIK Notes") and (b) up to 5% of the common shares of the restructured PSC, subject to dilution, inter alia, upon the conversion of the Secured PIK Debt.
The cash sweep will be applied in the following manner: (i) first, to pay any interest accrued during the first 12 months subsequent to Plan Implementation with respect to the Senior Secured Term Debt, together with accrued interest on any such deferred interest at the rate of 9% per annum; (ii) second, to pay accrued but unpaid interest with respect to the Secured PIK Debt; and (iii) third, to repay the Senior Secured Term Debt.
One tranche will be $250 million of senior secured term debt (the "Senior Secured Term Debt") and the other tranche will be $100 million of secured convertible payment in kind debt ("Secured PIK Debt").
On the Effective Date, Reorganized PSC and Reorganized PSI shall execute and deliver the Amended and Restated Term Credit Agreement to govern the New Secured PIK Debt and the New Senior Secured Term Debt.
On the Effective Date, Reorganized PSC shall issue for distribution in accordance with the provisions of the Plan all of the New Secured PIK Debt, New Unsecured PIK Notes, New Unsecured Convertible Notes and New Common Shares 491 pursuant to the provisions of the Plan.
Notwithstanding any other provision of the Plan, New Debt Securities other than the New Secured PIK Debt will be issued in denominations of $1,000 and integral multiples thereof.
Failure to do so shall result in such Indebtedness not constituting Qualified Subordinated PIK Debt for any purpose under this Lease.
Furthermore, the Parent will not (i) sell, transfer or otherwise dispose of any shares of Capital Stock of the Borrower, (ii) merge with or into any other Person, (iii) hold any Property other than (A) the Capital Stock of the Borrower, and (B) such amounts allowed to be transferred to the Parent pursuant to Section 8.8, or (iv) possess any liabilities other than the liabilities under the Credit Documents, the Parent PIK Debt, tax liabilities and other liabilities in the ordinary course of business.
The form of the Amended and Restated Credit Agreement governing the New Secured PIK Debt shall be in substantially the form attached in the Plan Supplement.

More Definitions of PIK Debt

PIK Debt means the Reorganized Federal-Mogul Junior Secured PIK Notes (as such term is defined in the Plan).

PIK Debt means the PIK facility agreement dated 2 August 2021 entered into by the Seller as borrower, which will be repaid on Closing and any other finance documents entered into in connection therewith;