Credit Bid Rights Sample Clauses
The Credit Bid Rights clause grants a secured lender the ability to use the amount of its outstanding debt as a bid in the sale of collateral, typically during bankruptcy or foreclosure proceedings. In practice, this means that instead of paying cash, the lender can offset the purchase price of the collateral by the value of the debt owed to it, effectively allowing the lender to acquire the asset without additional outlay. This clause ensures that secured creditors can protect their interests and recover value from their collateral, addressing the risk of undervalued sales and preserving the lender’s ability to be repaid.
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Credit Bid Rights. (a) If, during the continuance of an Event of Default, the Collateral Agent forecloses any of its Liens upon any Collateral, whether by public sale or private sale or judicial foreclosure or otherwise, and if directed by the Directing Creditors to exercise its credit bid rights as provided in this Section 4.08, the Collateral Agent, acting for and on behalf of the holders of Finance Obligations, shall be entitled (to the fullest extent it may lawfully do so) to use and apply then due and payable Finance Obligations as a credit on account of the purchase price payable by the Collateral Agent for any Collateral sold to the Collateral Agent at the corresponding foreclosure sale for all purposes related to bidding and making settlement or payment of the purchase price at such foreclosure sale.
(b) If, in connection with or, during the continuance of an Event of Default, in anticipation of any foreclosure of any of the Collateral Agent’s Liens upon any Collateral, Term Loans, Swap Obligations and Senior Secured Notes representing at least a majority in outstanding principal amount of Term Loans, Swap Obligations and Senior Secured Notes then outstanding are transferred to and registered in the name of a single transferee for purposes of facilitating or executing a bid for such Collateral at the corresponding foreclosure sale, such transferee shall be entitled (to the fullest extent it may lawfully do so) to use and apply all then due and payable Finance Obligations outstanding to such transferee as a credit on account of the purchase price payable by such transferee for any Collateral sold to such transferee at such foreclosure sale, for all purposes related to bidding and making settlement or payment of the purchase price at such foreclosure sale, but only if all Noteholders, Term Lenders and Swap Creditors consent thereto or if:
(i) each Creditor has been offered the opportunity to transfer to such transferee any or all of the Senior Secured Notes, any Term Loans and any Swap Obligations outstanding held by such Creditor on terms equivalent to the most favorable terms offered by such transferee to any Creditor for or in connection with any transfer of Term Loans, Swap Obligations or Senior Secured Notes to such transferee; and
(ii) effective provision is made (or found by order of a court of competent jurisdiction to have been made) for the pro-rata sharing among the Credit Classes of proceeds of the Collateral, even if the proceeds received by Creditors othe...
Credit Bid Rights. (a) If, during the continuance of an Actionable Event of Default, the Collateral Agent forecloses any of its Liens upon any Collateral, whether by public sale, private sale or judicial foreclosure or otherwise, and if directed in writing by an Act of the Applicable Authorized Representative, to exercise its credit bid rights as provided in this Section 2.8(a), the Collateral Agent, acting for and on behalf of the Holders, shall be entitled (to the fullest extent it may lawfully do so) to use and apply then matured Secured Obligations as a credit on account of the purchase price payable by the Collateral Agent for any Collateral sold to the Collateral Agent at the corresponding foreclosure sale, for all purposes related to bidding and making settlement or payment of the purchase price at such foreclosure sale.
(b) Each of the Company and the Guarantors hereby grants, confirms and agrees to cooperate with and permit the exercise and enforcement of the rights set forth in this Section 2.8.
Credit Bid Rights. (a) If, during the continuance of an Actionable Event of Default, the Collateral Agent forecloses any of its Liens upon any Collateral, whether by public sale, private sale or judicial foreclosure or otherwise, and if directed in writing by an Act of the Applicable Authorized Representative, to exercise its credit bid rights as provided in this Section 2.8(a), the Collateral Agent, acting for and on behalf of the Priority Facility Lenders, the Holders and the Working Capital Facility Lenders, shall be entitled (to the fullest extent it may lawfully do so) to use and apply then matured Secured Obligations as a credit on account of the purchase price payable by the Collateral Agent for any Collateral sold to the Collateral Agent at the corresponding foreclosure sale, for all purposes related to bidding and making settlement or payment of the purchase price at such foreclosure sale.
(b) Each of the Company and the Guarantors hereby grants, confirms and agrees to cooperate with and permit the exercise and enforcement of the rights set forth in this Section 2.8.
Credit Bid Rights. If, during the continuance of an Actionable Default, the Collateral Agent forecloses any of its Liens upon any Collateral, whether by public sale or private sale or judicial foreclosure or otherwise, and if directed by an Act of the Secured Debtholders to exercise its credit bid rights as provided in this Section 2.7(a), the Collateral Agent, acting for and on behalf of the Secured Debtholders and other holders of Secured Obligations, shall be entitled (to the fullest extent it may lawfully do so) to use and apply then matured Secured Obligations as a credit on account of the purchase price payable by the Collateral Agent for any Collateral sold to the Collateral Agent at the corresponding foreclosure sale, for all purposes related to bidding and making settlement or payment of the purchase price at such foreclosure sale.
Credit Bid Rights. The Lenders and the Pre-Petition Lenders shall have the right to credit bid (either directly or through one or more acquisition vehicles) the full amount of their claims in connection with any sale of the Debtors’ assets (in whole or in part), including without limitation, sales occurring pursuant to section 363 of the Bankruptcy Code or included as part of any chapter 11 plan subject to confirmation under section 1129(b)(2)(A)(ii)-(iii) of the Bankruptcy Code.
Credit Bid Rights. (a) Borrower acknowledges and agrees that, to the fullest extent permitted by applicable law, Lender shall have the right, pursuant to 11 U.S.C. § 363(k) and any similar applicable law, to credit bid all or any portion of the Obligations (including, without limitation, principal, accrued interest, fees, costs, expenses and the Premium) at any sale, auction, or disposition of any Collateral conducted under the Bankruptcy Code or other insolvency law.
(b) Borrower stipulates that all Obligations are fully secured by valid, perfected liens on the Collateral and consents to Lender’s right to credit bid the entire amount of such Obligations without cash payment, subject only to a final determination of the amount of the allowed secured claim by the bankruptcy court.
(c) ▇▇▇▇▇▇▇▇ waives and agrees not to contest ▇▇▇▇▇▇’s right to credit bid or to argue that any portion of the Obligations is not subject to a credit bid, except as otherwise expressly determined by a bankruptcy court of competent jurisdiction.
Credit Bid Rights. (a) If, during the continuance of an Event of Default, the Collateral Agent forecloses any of its Liens upon any Collateral, whether by public sale or private sale or judicial foreclosure or otherwise, and if directed in writing by an Act of the Secured Debtholders or an Act of the Administrative Agent, as the case may be, to exercise its credit bid rights as provided in this Section 2.7(a), the Collateral Agent, acting for and on behalf of the Secured Debtholders and other holders of Secured Obligations, shall be entitled (to the fullest extent it may lawfully do so) to use and apply then matured Secured Obligations as a credit on account of the purchase price payable by the Collateral Agent for any Collateral sold to the Collateral Agent at the corresponding foreclosure sale, for all purposes related to bidding and making settlement or payment of the purchase price at such foreclosure sale.
(b) Each of the Company, Subsidiary Guarantors and other Obligors hereby grants, confirms and agrees to cooperate with and permit the exercise and enforcement of the rights set forth in this Section 2.7.