Debt Relief. Much of the public discussion has focused on the amount of the “haircut,” or reduction, to the outstanding bonds’ principal, an amount equal to 22.5%. It is difficult, relying solely on information contained in public documents, to determine whether that amount is (1) reasonable and/or (2) sufficient to allow PREPA to continue operating in a sustainable way. On the one hand, we should remember that the outstanding PREPA bonds are “special revenue bonds,” which usually enjoy a high degree of protection in municipal bankruptcy cases under Chapter 9 of the U.S. Bankruptcy Code. Nese are bonds commonly issued by governmental agencies that provide such basic services as transportation, water, sewers, electricity, gas for heating, and so on. Ne repayment guarantee for these bonds, as is the case with the existing PREPA bonds, is a lien against the net revenues (after paying the operating costs of the issuer) generated by the issuer. According to Xxxxx X. Xxxxxxx, an expert in municipal bankruptcies and author of Municipalities in Dis- tress?: How States and Investors Deal with Local Government Financial Emergencies, Congress amend- ed the Bankruptcy Code in 1988 specifically to make it clear that revenues encumbered on behalf of this type of bondholders could not be diverted for other purposes, and that those bondholders had the right to continue receiving their payments—again, we stress, net of the issuer’s operating costs—even after the debtor had filed for bankruptcy. Nerefore, these bonds are not as a general rule substantially modified, if at all, in a case under Chapter 9. Nus, we might say that in comparison with other bankruptcies by similar entities in the United States, the 22.5% reduction in the principal set forth in the RSA is reasonable. However, PREPA is not undergoing a process pursuant to Chapter 9, even though Title III of PROMESA incorporates many of the provisions of that Chapter through its Section 301 (a). Nerefore, the FOMB may have more leeway to negotiate a restructuring of PREPA’s debt. In addition, in the case of PREPA, we must take the following factors into account: (1) it operates in an economy that has shown no growth in 13 years;
Debt Relief. Filing a voluntary petition or otherwise initiating Legal Proceedings to have the Company or any Subsidiary adjudicated insolvent, or seeking an order for relief of the Company as a debtor under the United States Bankruptcy Code (11 U.S.C. §§ 101 et seq.); filing any petition seeking any composition, reorganization, readjustment, liquidation, dissolution, or similar relief under the present or any future federal bankruptcy laws or any other present or future applicable federal, state, or other statute or law relative to bankruptcy, insolvency, or other relief for debtors with respect to the Company or any Subsidiary; seeking the appointment of any trustee, receiver, conservator, assignee, sequestrator, custodian, liquidator (or other similar official) of the Company or any Subsidiary or of all or any substantial part of the assets of the Company or any Subsidiary; making any general assignment for the benefit of creditors of the Company or any Subsidiary; admitting in writing the inability of the Company or any Subsidiary to pay its debts generally as they become due; or declaring or effecting a moratorium on the Company's or any Subsidiary's debt or taking any action in furtherance of any of the above proscribed actions.
Debt Relief. Except as provided in subsection (iii) below, Berkeley will not take any steps to collect or pursue any currently outstanding debt owed to it by students for unpaid tuition or fees incurred prior to January 1, 2019. This agreement shall not affect any amounts paid on such debt prior to the Effective Date of this Settlement Agreement and shall not affect Berkeley’s right to demand and/or collect full payment of all student debt incurred on or after January 1, 2019.
Debt Relief. The large External Debt Obligations of Egypt make its balance of payments highly vulnerable to external shocks like a decline in oil prices, or a sudden increase in the value of dollars, which will result in an increase in the real value of the debt service. After six months of the eruption of the Gulf War, Egypt made an agreement with the Paris Club Creditors. Accordingly, Egypt was to be relieved from 50% of the Official Debt. This will be done over three stages on the condition that Egypt will continue to implement the Structural Adjustment Program (SAP). The first stage was 15% granted at the time of the agreement (25th May 1991), another 15% on January 1993 and the last 20% on July 1994. As an expression of gratitude for the support in the Gulf War, the USA cancelled 90% of Egypt's military debt.
Debt Relief a. Upon final approval of the Settlement, Defendant will waive all outstanding Late Fees that have posted to a student account within the Class Period but which have not yet been collected (thereby providing “Debt Relief”).
