Distribution Covenants Sample Clauses

Distribution Covenants. K-Sea OLP shall not be restricted from making distributions to K-Sea LP. K-Sea LP may, at any time, make any distribution of the Consolidated Group's Available Cash (as defined in Attachment A), PROVIDED, THAT, upon the event of any of (i) through (vi) below, no distributions of Available Cash shall be permitted unless the Secretary provides its written consent for such distributions of Available Cash: (i) The occurrence of an event that with time or notice would become a Payment Default; (ii) The occurrence and continuance of an event that with time or notice would become a Security Default, including without limitation any default in the observance and performance of any provision related to the Additional Availability of Funds (in the amount of $8,000,000 as provided in Section 6 above); (iii) The occurrence and continuance of an event that with time or notice would become a Security Default with respect to the observance and performance of any provision related to the Additional Mortgage (as provided in Section 7 above) (if not cured within the period of time permissible for such Security Default as set forth in the Security Agreement); (iv) Any member of the Consolidated Group becomes insolvent or bankrupt, or has dissolved or shall, by a court of competent jurisdiction, be adjudged a bankrupt, or files a petition of reorganization under the United States Bankruptcy Code, or such petition be filed by creditors and the same shall be approved by a court of competent jurisdiction; (v) K-Sea LP has outstanding indebtedness exceeding Five Million Dollars ($5,000,000) incurred for the purpose of making distributions or indemnity payments under Section 8(a)(7); or (vi) The occurrence and continuance of an event that with time or notice would become a Security Default with respect to the observance and performance of any provision related to the Obligations Deposit (as provided in Section 6(b) above).