Examples of Designated Asset Sale in a sentence
As of July 27, BONY had not responded, forcing Wilmington Trust to reiterate its request on that date.In a letter dated August 5, 2005, Kelley Drye requested that BONY, as Collateral Trustee, inform them of withdrawals from the Designated Asset Sale Proceeds Account and that the First Lien Trustee permit no further withdrawals from that Account without prior notice to the counsel for First Lien Noteholders.
By virtue of this Joinder, the First Lien Notes became “Priority Lien Debt”7 under the Designated Asset Sale Proceeds Control Agreement (the “Control Agreement”) and the Collateral Trust Agreement and were granted senior status in respect to priority of liens and repayment.
As already discussed, under § 5.11(b) of the Collateral Trust Agreement, BONY is permitted to refrain from releasing funds from the Designated Asset Sale Proceeds Account in the event of disagreement between the parties and until that disagreement is resolved by the parties or by a court order.
No details about the exact use were given.In a letter sent one week later to BONY, Kelley Drye explained that Calpine’s 10Q, dated on or about August 9, 2005, appeared to indicate Rosetta Proceeds had been permitted to be withdrawn from the Designated Asset Sale Proceeds Account.Accordingly, the First Lien Noteholders also requested copies of the Collateral Trustee’s correspondence and documents pursuant to § 3.6 of the Collateral Trust Agreement.
We reiterate our earlier demands that no further disbursements occur from the Designated Asset Sale Proceeds Account other than to pay the [First Lien] Notes.”33 The letter also noted that two proposed transfers were impermissible under the Instruments and that other conditions in the Instruments had not been met.34Three days later, on September 19, BONY refused to release the funds for Calpine’s two requested transfers, dated September 13 and September 16, from the Designated Asset Sale Proceeds Account.