PROPOSED DEBT RESTRUCTURING Clause Samples
The Proposed Debt Restructuring clause outlines the terms and process by which a party's existing debt obligations may be modified, consolidated, or otherwise adjusted. Typically, this clause specifies the types of debts involved, the proposed changes such as extended payment schedules, reduced interest rates, or partial forgiveness, and the steps required for approval by relevant stakeholders. Its core practical function is to provide a structured framework for negotiating and implementing changes to debt arrangements, thereby helping parties manage financial difficulties and avoid default.
PROPOSED DEBT RESTRUCTURING. Pursuant to the terms of the Debt Restructuring Agreement, the Bond Restructuring Agreement shall be terminated without any payment or other consideration subject to the following (the “Relevant Approvals”):
(a) the Company obtaining approval from the Board;
(b) the Company obtaining approval from shareholders of the Company (“Shareholders”) for amongst others, the allotment and issuance of the Repayment Shares (as defined below), at a special general meeting to be convened (the “SGM”);
(c) the Company obtaining approval from all relevant authorities including the Singapore Exchange Securities Trading Limited (the “SGX-ST”) for the listing and quotation of the Repayment Shares (as defined below) on the Catalist of the SGX-ST; and
(d) the allotment, issuance and subscription of the Repayment Shares (as defined below) not being prohibited by any order or directive of any judicial or regulatory authority including the SGX-ST and the Company not being in breach of the terms of the Debt Restructuring Agreement, and where such approvals are subject to conditions (which are to be acceptable to the Creditor) to be fulfilled on or before 28 December 2017, or such other date as the Company and the Creditor may agree in writing (the “Long Stop Date”), they are so fulfilled. On cancellation of the Bond Restructuring Agreement, the Parties have agreed that with effect from the date of receipt of all the Relevant Approvals, they shall have no rights, claims or cause of action against each other in respect of the Bond Restructuring Agreement and will not enforce or attempt to enforce any of the rights, claims, duties, liabilities, obligations, undertakings, indemnities and/or breaches in respect of the Bond Restructuring Agreement. In the event that the Company is unable to obtain the Relevant Approvals by the Long Stop Date, the Debt Restructuring Agreement shall terminate and ipso facto cease and the Parties have agreed that they shall have no rights, claims or causes of action against each other in respect of the Debt Restructuring Agreement, and the Bond Restructuring Agreement shall continue to have full force and effect and automatically be extended by two (2) years from 18 June 2018 (“Extension”) and the extended final repayment date shall be 18 June 2020. For the avoidance of doubt:
(a) in the event of any inconsistency arising from the Extension, the interest rate applicable to the Bond Restructuring Agreement for the period between 18 June 2018 and 18 June 2020...
PROPOSED DEBT RESTRUCTURING. The Proposed Debt Restructuring serves to restructure the Group’s indebtedness by comprehensively addressing the outstanding debts of KFM Group through a combination of debt waiver, cash settlement and settlement via the issuance of Settlement Shares and thus relieving the financial pressure on the Group’s debt settlement obligations and cash flow, which would in turn enable the management of the Group to focus on turning around the business operations of the Group.
PROPOSED DEBT RESTRUCTURING. DEFINITIONS In this announcement, unless otherwise indicated, the following words and abbreviations shall have the following meanings:-