Intercorporate Debt Clause Samples
The Intercorporate Debt clause defines how debts owed between affiliated or related companies within a corporate group are treated under an agreement. Typically, this clause outlines whether such internal debts are to be considered in calculations of financial covenants, net debt, or in the event of insolvency or restructuring. For example, it may specify that loans or payables between a parent company and its subsidiaries are excluded from certain financial tests or are subordinated to external creditors. The core function of this clause is to clarify the treatment of intra-group financial obligations, preventing confusion or disputes over how these internal debts impact the parties’ rights and obligations under the contract.
Intercorporate Debt. There is no intercorporate indebtedness existing between the Company and Parent that was issued, acquired, or will be settled at a discount.
Intercorporate Debt. Contingent Liabilities (other than Guarantees and indemnities in respect of Indebtedness for Borrowed Money) incurred in the ordinary course of business of a Loan Party and which, in any event, (after any time when liability thereunder can be reasonably quantified in respect of a particular circumstance) do not in the aggregate exceed Cdn. $5,000,000; and
Intercorporate Debt. Except for Intercorporate Debt and those amounts for which there is a commensurate adjustment or payment made at Closing for the benefit of the Purchaser, at Closing there will be no amounts, obligations or liabilities owed by any member of the Corporate Group to any of Hunting, the Vendor or their respective Affiliates.
Intercorporate Debt. The Purchaser shall have paid or loaned an amount equal to the Intercorporate Debt set forth on the Estimated Closing Date Indebtedness Statement to the Corporation and the Corporation (on behalf of itself and the Corporate Group) shall have repaid such Intercorporate Debt in cash to the Vendor;
Intercorporate Debt amend the Intercorporate Debt or any Debt owing to Motorcar (or any Subsidiary of Motorcar), without first obtaining the prior written consent of the Agent.