Common use of PRIORITY OF SENIOR INDEBTEDNESS UPON DISTRIBUTION OF ASSETS Clause in Contracts

PRIORITY OF SENIOR INDEBTEDNESS UPON DISTRIBUTION OF ASSETS. Upon any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to creditors in the event of any insolvency or bankruptcy proceedings, and any receivership, liquidation, reorganization or other similar proceedings in connection therewith, relative to the Company or to its property, or upon any such payment in the event of proceedings for voluntary or involuntary liquidation, dissolution or other winding up of the Company, whether or not involving insolvency or bankruptcy, all principal, premium, if any, and interest due or to become due upon all Senior Indebtedness shall first be paid in full, or payment thereof duly provided for, before any payment is made on account of the Indebtedness evidenced by the Notes. Upon any such proceedings (but subject to the power of a court of competent jurisdiction to make other equitable provision with respect to the rights of the holders of any Senior Indebtedness and the holders of the Notes pursuant to a lawful plan of reorganization under applicable Debtors' Laws) any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to which the holders of the Notes would be entitled, except for the provisions of this Article 3, shall be paid or delivered by the Company or by any Custodian or other Person making such payment or distribution, or by the holders of the Notes if received by them or it, directly to the holders of Senior Indebtedness (pro rata to each such holder on the basis of the respective amounts of Senior Indebtedness held by such holder) or their representatives to the extent necessary to pay all Senior Indebtedness in full after giving effect to any concurrent payment or distribution to or for the holders of Senior Indebtedness, before any payment or distribution is made to the holders of the Notes. In the event that, notwithstanding the foregoing provisions of this Section 3.03, any such payment or distribution of property or securities, shall be received by the holders of the Notes before all Senior Indebtedness is paid in full, or provision made for such payment, in accordance with its terms, such payment or distribution shall be held for the benefit of, and shall be paid over or delivered to, the holders of such Senior Indebtedness or their representatives, as their respective interests may require, ratably as aforesaid, for application to the payment of all Senior Indebtedness remaining unpaid to the extent necessary to pay all such Senior Indebtedness in full in accordance with its terms, after giving effect to any concurrent payment or distribution to the holders of such Senior Indebtedness.