Net Orderly Liquidation Value Sample Clauses
The Net Orderly Liquidation Value clause defines the estimated value that assets would yield if sold in an orderly, non-distressed manner over a reasonable period of time. This value is typically determined by an independent appraiser and is used in contexts such as asset-based lending or collateral valuation, where lenders need to assess the recoverable value of pledged assets. By establishing a clear method for valuing assets in the event of liquidation, the clause helps ensure that both parties have a realistic understanding of potential recoveries, thereby reducing uncertainty and allocating risk more transparently.
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Net Orderly Liquidation Value. Effective the first time that Lender implements an Asset Sale Lending Adjustment pursuant to Section 5 of this Amendment, all references to the term "Net Orderly Liquidation Value" in the Loan Agreement and the other Financing Agreements shall be deemed and each such reference is hereby amended to mean, (A) as to Eligible Inventory other than Gump's Eligible Inventory or TCS Eligible Inventory consisting of raw materials, an amount equal to eighty (80%) percent of the gross proceeds that could be realized in cash if such Inventory were sold within a six (6) to nine (9) month period in an orderly liquidation sale, and (B) as to TCS Eligible Inventory consisting of raw materials, an amount equal to seventy (70%) percent of the gross proceeds that could be realized in cash if such Inventory were sold within a six (6) to nine (9) month period in an orderly liquidation sale minus, in each case under clauses (A) and (B), the estimated costs, expenses, fees, including reasonable attorneys fees, taxes and other charges which would be incurred in connection with such sales, and estimated returns, all as set forth in, or calculated using, the most recent Appraisal.
Net Orderly Liquidation Value. Net Proceeds...................................................................................................
Net Orderly Liquidation Value with respect to any item of Collateral in which Agent for its benefit and the benefit of Lender has a first perfected security interest (subject to Permitted Liens), the amount estimated to be recoverable in the orderly liquidation of such item of Collateral over a three month period with respect to Inventory or a six month period with respect to Equipment or any other item of such Collateral, net of liquidation expenses (as reasonably estimated by Agent), such amount to be determined by an appraisal of such item of Collateral (on a category or type basis) conducted by a qualified company selected by Agent in its reasonable discretion as provided in Section 2.10 of the Agreement (or if such Collateral turns over in the ordinary course of business, based upon the assumptions derived from the most recent such appraisal of Collateral similar in type) or as determined by Agent in the reasonable exercise of its discretion. New Mortgages - as defined in Section 5.6 of the Agreement. New Term Loan– as defined in Section 1.6 of the Agreement. Non-Restructuring Capital Expenditure– any Capital Expenditure that is not a Restructuring Capital Expenditure. Notes - the Revolving Notes and the Term Notes.
Net Orderly Liquidation Value. With respect to any inventory, the net appraised orderly liquidation value of such inventory, as determined from time to time by the Administrative Agent by reference to the most recent appraisal of the inventory of the Borrower performed by an appraisal firm acceptable to the Administrative Agent. Non-Financed Capital Expenditures Capital Expenditures paid in cash and not financed with Indebtedness for borrowed money; provided that Capital Expenditures financed with the proceeds of Revolving Loans shall be deemed to constitute “Non-Financed Capital Expenditures” for purposes of this Agreement. Non-U.S. Lender. See §5.2.3.
Net Orderly Liquidation Value. The sample of Eligible Equipment that was appraised to determine the Net Orderly Liquidation Value of such Eligible Equipment for the Effective Date is a representative sample of the quality, condition and age of all Eligible Equipment on the Effective Date.