Net Worth of MLP GP. MLP GP will maintain a net value (as determined pursuant to the principles of Treasury Regulation Section 1.752-2(k)(2), applying those principles as if MLP GP were a disregarded entity for federal income tax purposes) that is not less than the principal amount of the Spectra MLP Debt outstanding immediately after the Closing, which amount will be reduced by principal payments by Spectra MLP on such indebtedness and which amount will not be increased by any new borrowings by Spectra MLP.
Net Worth of MLP GP. MLP GP will maintain a net value (as determined pursuant to the principles of Treasury Regulation Section 1.752-2(k)(2), applying those principles as if MLP GP were a disregarded entity for federal income tax purposes) that is not less than the principal amount of the Base Distribution Debt outstanding immediately after the First Closing, together with all other indebtedness of SEP that immediately after the First Closing constitutes an MLP GP Recourse Liability, which amount will be reduced by principal payments by SEP on such indebtedness and which amount will not be increased by any new borrowings by SEP.
Net Worth of MLP GP. MLP GP covenants and agrees that it will maintain a net value (as determined pursuant to the principles of Treasury Regulation Section 1.752-2(k)(2), applying those principles as if MLP GP were a disregarded entity for federal income tax purposes) that is not less than the principal amount of Spectra MLP’s outstanding indebtedness immediately after the Closing that constitutes recourse liabilities of MLP GP (within the meaning of Treasury Regulation Section 1.752-2), which amount will be reduced by principal payments by Spectra MLP on such indebtedness and which amount will not be increased by any new borrowings by Spectra MLP.
