Consent by Majority Holders Clause Samples
The 'Consent by Majority Holders' clause establishes that decisions or approvals required under an agreement can be made by a specified majority of the holders, rather than requiring unanimous consent. In practice, this means that if a certain percentage—often more than 50%—of the holders agree to a proposed action, that decision becomes binding for all holders, even those who disagree. This mechanism streamlines decision-making processes, prevents minority holders from blocking actions, and ensures that the group can act efficiently when needed.
Consent by Majority Holders. Without prior notice to the Holders, the Credit Parties, when authorized by their respective Board of Directors (as evidenced by a Board Resolution), and the Trustee may amend this Indenture, the Notes, the Security Documents and the Intercreditor Agreement with the written consent of the Holders of not less than a majority in aggregate principal amount of the Notes then outstanding, and the Holders of at least a majority of the principal amount of the Notes then outstanding by written notice to the Trustee may waive future compliance by any Credit Party with any provision of this Indenture, the Notes or the Security Documents; provided that, other than for Lien releases and terminations in accordance with this Indenture and the Security Documents and Qualified Lien Releases, the Holders of at least 85% in aggregate principal amount of the Notes then outstanding shall be required to consent to the release of any substantial portion of Collateral from the Lien of the Security Documents. The consent of the Holders shall not be required for any amendment, modification or supplement of this Indenture or any Security Document Indenture solely (i) in order to effectuate the subordination of the Lien of the Security Documents to any Lien securing a Working Capital Facility as contemplated by Section 6.04 hereof or (ii) in connection with the release by the Trustee of any Lien upon any Property of the Company or any Subsidiary that is the subject of a sale or other disposition permitted hereunder, to the extent such release is required pursuant to Section 6.05 hereof.
Consent by Majority Holders. Without prior notice to the Holders, the Debtor Parties, when authorized by their respective Board of Directors (as evidenced by a Board Resolution), and the Trustee may amend this Indenture, the Notes or the Security Documents with the written consent of the Holders of not less than a majority in aggregate principal amount of the Notes then outstanding, and the Holders of at least a majority of the principal amount of the Notes then outstanding by written notice to the Trustee may waive future compliance by any Debtor Party with any provision of this Indenture, the Notes or the Security Documents, provided that the Holders of at least 85% in aggregate principal amount of the Notes then outstanding shall be required to release any substantial portion of Collateral from the Lien of the Security Documents.
Consent by Majority Holders. Notwithstanding anything to the contrary contained in the Debentures or the Security Documents, action by the Majority Holders shall be required to effect any of the following and shall be binding upon all Holders and the Agent (and the Agent may grant its consent or approval in reliance upon Majority Holders’ consent to any such action); provided that in each case all Debentures are treated the in the same manner by such action :
(a) any forgiveness of all or any part of the obligations represented by the Debentures, or waiver of any provisions regarding the scheduled payment or mandatory prepayment of the Debentures (including postponements of the date on which any interest is payable);
(b) any subordination of Holders’ rights to payment on the Debentures to other parties rights to payment on other obligations of the Company;
(c) any subordination of the hypothecs created by the Security Agreement to other liens, hypothecs and/or security interests;
(d) any “stand still” agreement, agreement to refrain from taking further actions or similar agreement that may be made with other creditors of the Company establishing relative rights with respect to such creditors;
(e) any determination to accelerate the Debentures;
(f) any waiver of, or any amendment to, any provision of the Debentures; any waiver of, or any amendment to or release of collateral or of the Company from its obligations under, any provision of any of the Security Documents;
(g) any waiver of, or any amendment to or release of collateral or of the Company from its obligations under, any provision of any of the Security Documents;
(h) any determination to pursue any Foreclosure, or instruct the Agent to exercise remedies in order to realize upon, any collateral under any of the Security Documents except in the case of an Event of Default with respect to the Corporation described in Section 6.1(A) of the Debenture pursuant to which the Holder or Holders of the Debentures at the time outstanding affected by such Event of Default may direct the Collateral Agent to declare, by notice or notices to the Corporation, all the Debentures held by such Holder or Holders to be immediately due and payable without presentment, demand, protest or further notice, all of which are hereby waived; or
(i) any increase or decrease of the interest rate applicable under the Debentures or any waiver of any interest thereunder. Actions by the Agent hereunder shall be binding upon the Company with respect to the Financi...