will be Solvent definition

will be Solvent. Solvent" shall mean, when used with respect to any person or entity, that: (a) such person or entity does not intend to incur, and does not believe and has no reason to believe that it will incur, debts beyond its ability to pay as they become due; (b) the sum of such person's or entity's assets is greater than all of such person's or entity's liabilities at a fair valuation; (c) such person or entity has sufficient cash flow to enable it to pay its debts as they become due; and (d) such person or entity does not have unreasonably small capital to carry on such person or entity's business as theretofore operated and all businesses in which such person or entity is about to engage. "Fair valuation" is intended to mean that value which can be obtained if the assets are sold within a reasonable time in arm's-length transactions in an existing and not theoretical market.
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will be Solvent. As used in this paragraph, the term "Solvent" means, with respect to a particular date that on such date the present fair market value (or present fair saleable value) of the assets of the Company and its consolidated subsidiaries are not less than the total amount required to pay the probable liabilities of the Company and its consolidated subsidiaries on their total existing debts and liabilities (including contingent liabilities) as they become absolute and matured, the Company and its consolidated subsidiaries are able to realize upon their assets and pay their debts and other liabilities, contingent obligations and commitments as they mature and become due in the normal course of business, assuming the sale of the Securities as contemplated by this Agreement and the Offering Memorandum, the Company and its consolidated subsidiaries are not incurring debts or liabilities beyond their ability to pay as such debts and liabilities mature and the Company and its consolidated subsidiaries are not engaged in any business or transaction, and are not about to engage in any business or transaction, for which their property would constitute unreasonably small capital after giving due consideration to the prevailing practice in the industry in which the Company and its consolidated subsidiaries are engaged. In computing the amount of such contingent liabilities at any time, it is intended that such liabilities will be computed at the amount that, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.
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Examples of will be Solvent in a sentence

  • Each Loan Party is and, upon the incurrence of any Obligations by such Loan Party on any date on which this representation is made, will be, Solvent.

  • Each Credit Party is and, upon the incurrence of any Obligation by such Credit Party on any date on which this representation and warranty is made, will be, Solvent.

  • Each Credit Party is and, after consummation of the transactions contemplated by this Credit Agreement, will be Solvent.

  • After giving effect to each Advance hereunder, and the disbursement of the proceeds of such Advance, the Borrower is and will be Solvent.

  • Each of the Company and the Guarantors is, and immediately after the Closing Date will be, Solvent.

  • Borrower is Solvent (as defined below) and, after the execution and delivery of the Loan Documents and the consummation of the transactions contemplated thereby, Borrower will be Solvent.

  • Borrower is, and upon consummation of the transactions contemplated by this Agreement, the other Loan Documents and any other documents, instruments or agreements relating thereto, will be, Solvent.

  • After giving effect to each Advance hereunder, and the disbursement of the proceeds of such Advance, it is and will be Solvent.

  • Borrower is and, immediately after giving effect to the Borrowing and the use of proceeds thereof will be, Solvent.

  • The Borrower is and, after the consummation of the transactions contemplated by this Credit Agreement, will be Solvent.