Noteholder Restructuring Support Lockup Agreement Clause Samples
The Noteholder Restructuring Support Lockup Agreement is a contractual provision that binds noteholders to support a proposed restructuring plan for a company or issuer. Under this clause, noteholders agree not to take actions that would undermine the restructuring, such as selling their notes to parties who do not agree to the plan or voting against the restructuring in creditor meetings. This agreement ensures that a critical mass of creditors remains committed to the restructuring process, thereby increasing the likelihood of a successful and orderly resolution to financial distress.
Noteholder Restructuring Support Lockup Agreement the Noteholder Restructuring Support Lockup Agreement (or any material provision thereof) shall for any reason (i) be repudiated by, cease to be valid and binding on or be held to be unenforceable against, any party to it, or any party to it shall so state in writing or so assert in any pleading filed in any court or proceeding or (ii) be terminated, whether as a result of illegality, the occurrence of an event of default thereunder, by operation of law, by the exercise by any party of any termination right thereunder or for any other reason; or
Noteholder Restructuring Support Lockup Agreement. Evidence that (i) the Debtors have entered into a binding Noteholder Restructuring Support Lockup Agreement in form and substance reasonably satisfactory to the Instructing Group and the Last Out Requisite Lenders, approving the terms of an Approved Plan and (ii) the Debtors have obtained acceptances in respect of the Approved Plan from, and the Noteholder Restructuring Support Lockup Agreement has been executed by, (A) the Debtors and (B) the members of the “ad-hoc committee of holders of Senior Subordinated Notes” holding at least 66.67% of the aggregate principal amount of the Senior Subordinated Notes(2).