Intercompany Creditors Sample Clauses
The Intercompany Creditors clause defines the treatment and rights of creditors that are affiliated with the same corporate group as the debtor, typically in the context of insolvency or restructuring. It outlines how claims by these related parties are to be handled, often distinguishing them from external, third-party creditors, and may set specific rules for the ranking, payment, or subordination of such claims. This clause ensures transparency and fairness in the distribution of assets, preventing conflicts of interest and potential preferential treatment of intercompany claims over those of independent creditors.
Intercompany Creditors. (a) Until the Final Discharge Date:
(i) no Intercompany Creditor shall demand or receive, and no Intercompany Debtor nor any ICA Group Company shall (and the Issuer shall ensure that no other Group Company will) make, any payment, repayment or prepayment of any principal, interest or other amount on or in respect of, or any distribution in respect of, or any redemption or purchase of, any Intercompany Debt in cash or in kind (or otherwise discharge any part of the Intercompany Debt by way of set-off or otherwise), except as permitted by Clause 7.2 (Permitted Intercompany Payments) or Clause 10.2 (Acceleration and Claim of Subordinated Debt and Intercompany Debt);
(ii) no Intercompany Creditor shall claim or rank as a creditor in the insolvency, winding-up, bankruptcy or liquidation of any Group Company other than in accordance with Clause 10.2 (Acceleration and Claim of Subordinated Debt and Intercompany Debt);
(iii) no Intercompany Creditor, Intercompany Debtor or ICA Group Company shall take or omit to take any action whereby the ranking and/or subordination contemplated by this Agreement may be impaired; and
(iv) no Intercompany Creditor or Intercompany Debtor shall amend or terminate any provision of any Intercompany Document (unless the amendment is not prejudicial to the interests of the Secured Parties).
(b) Paragraph (a) above does not apply to any action arising as a result of any prior consent of the Representatives.
(c) No Intercompany Creditor shall permit to subsist or receive, and no ICA Group Company shall (and the Issuer shall ensure that no other Group Company will) create or permit to subsist, any Security or any guarantee for or in respect of any Intercompany Debt except if permitted by the Security Agent (acting on instructions from the Representatives).