Common use of Bankruptcy Related Covenants Clause in Contracts

Bankruptcy Related Covenants. (a) To the extent permitted by applicable law and not inconsistent with Borrower’s discharge of compliance with its fiduciary duty, as advised by counsel, Borrower shall not, nor shall Borrower cause or permit any Significant Party, Sponsor or Affiliated Manager, or any Related Party (as defined in the Guaranty) of any Significant Party, Sponsor or Affiliated Manager, to, seek substantive consolidation in connection with a proceeding under the Bankruptcy Code or any other Creditors’ Rights Laws of any Loan Party (other than the substantive consolidation of an Affiliated Manager with any other Person which is not a Loan Party). (b) To the extent permitted by applicable law and not inconsistent with Borrower’s discharge of compliance with its fiduciary duty, as advised by counsel, Borrower shall not, nor shall Borrower cause or permit any Loan Party or any Related Party (as defined in the Guaranty) of a Loan Party to, provide, originate, acquire an interest in or solicit (in writing) or accept from Sponsor, any Related Party (as defined in the Guaranty) of Sponsor or any other Loan Party any debtor-in-possession financing on behalf of a Loan Party in the event that such Loan Party is the subject of a proceeding under the Bankruptcy Code or under any other Creditors’ Rights Laws (other than debtor-in-possession financing provided to or on behalf of an Affiliated Manager by a Person which is not a Loan Party in such a proceeding of such Affiliated Manager which involves no other Loan Party).