Distressed Exchange means any distressed exchange or other debt restructuring where the Obligor of such Collateral Debt Obligation has offered the class of holders of the Collateral Debt Obligation generally a new obligation or package of obligations which, in the reasonable judgment of the Investment Manager either (i) amounts to a materially diminished financial obligation, or (ii) has the purpose of helping the Obligor of such Collateral Debt Obligation to avoid default.
Distressed Exchange. : The exchange (by means of a disposition of an Exchanged Obligation and the acquisition of a Received Obligation) of (a) a Defaulted Obligation for a debt obligation of the related Obligor or another Obligor that is a Defaulted Obligation or a Credit Risk Obligation or (b) a Credit Risk Obligation for a debt obligation of the related obligor or another obligor that is a Credit Risk Obligation which, but for the fact that such debt obligation is a Defaulted Obligation or a Credit Risk Obligation or has an S&P Rating below "CCC-", would otherwise qualify as a Collateral Obligation and (i) in the Collateral Manager's reasonable business judgment, at the time of the exchange, such debt obligation received on exchange has a better likelihood of recovery than the obligation to be exchanged, (ii) as determined by the Collateral Manager, at the time of the exchange, the Received Obligation is no less senior in right of payment vis-à-vis its Obligor's other outstanding indebtedness than the Exchanged Obligation vis-à-vis its Obligor's other outstanding indebtedness, (iii) as determined by the Collateral Manager, both prior to and after giving effect to such exchange, each of the Overcollateralization Ratio Tests is satisfied or if any Overcollateralization Ratio Test was not satisfied prior to such Distressed Exchange, the Overcollateralization Ratio relating to such test will be at least as close to being satisfied after giving effect to such exchange as it was before giving effect to such Distressed Exchange, (iv) in the case of the exchange for a Defaulted Obligation, the period for which the Issuer held the Exchanged Obligation shall be included for all purposes in this Indenture when determining the period for which the Issuer holds the Received Obligation, (v) as determined by the Collateral Manager, such Exchanged Obligation was not acquired in a Distressed Exchange, (vi) the
Distressed Exchange. In connection with any Investment in the form of Indebtedness, a bankruptcy reorganization, distressed exchange or other debt restructuring (including by an agreement among holders of such Indebtedness), pursuant to which the obligor of such Indebtedness has issued to the holders of such Indebtedness a new security or obligation or package of securities or obligations that, in the reasonable judgement of the Borrower, amounts to a diminished financial obligation or has the purpose of helping the obligor of such Indebtedness avoid default.
Examples of Distressed Exchange in a sentence
An offer by the issuer of a Collateral Obligation to exchange one or more of its outstanding debt obligations for a different debt obligation or to repurchase one or more of its outstanding debt obligations for Cash, or any combination thereof; provided, that an offer by such issuer to exchange unregistered debt obligations for registered debt obligations will not be considered a Distressed Exchange Offer.
An offer by the issuer of a Collateral Obligation to exchange one or more of its outstanding debt obligations for a different debt obligation or to repurchase one or more of its outstanding debt obligations for cash, or any combination thereof; provided that, an offer by such issuer to exchange unregistered debt obligations for registered debt obligations shall not be considered an S&P Distressed Exchange Offer.
An offer by the issuer of a Collateral Obligation to exchange one or more of its outstanding debt obligations for a different debt obligation or to repurchase one or more of its outstanding debt obligations for Cash, or any combination thereof; provided that an offer by such issuer to exchange unregistered debt obligations for registered debt obligations will not be considered a Distressed Exchange Offer.
An offer by the issuer of a Collateral Debt Obligation to exchange one or more of its outstanding debt obligations for a different debt obligation or to repurchase one or more of its outstanding debt obligations for Cash, or any combination thereof; provided that an offer by such issuer to exchange unregistered debt obligations for registered debt obligations shall not be considered a Distressed Exchange Offer.
An offer by the issuer of an Underlying Asset to exchange one or more of its outstanding debt obligations for a different debt obligation or to repurchase one or more of its outstanding debt obligations for cash, or any combination thereof; provided that an offer by such issuer to exchange unregistered debt obligations for registered debt obligations shall not be considered a Distressed Exchange Offer.
More Definitions of Distressed Exchange
Distressed Exchange means in connection with any Asset, a distressed exchange or other distressed debt restructuring has occurred, as reasonably determined by the Collateral Manager, pursuant to which the issuer or obligor of such Asset has issued to the holders of such Asset a new security or package of securities or obligations that, in the sole judgment of the Collateral Manager, amounts to a diminished financial obligation or has the purpose of helping the issuer of such Asset avoid default; provided that no Distressed Exchange shall be deemed to have occurred if the securities or obligations received by the Borrower in connection with such exchange or restructuring meet the Eligibility Requirements.
Distressed Exchange. In connection with any Collateral Obligation, a distressed exchange or other debt restructuring has occurred, as reasonably determined by the Collateral Manager, pursuant to which the Obligor or issuer of such Collateral Obligation has issued to the holders of such Collateral Obligation a new obligation or security or package of obligations or securities that, in the sole judgment of the Collateral Manager, amounts to a diminished financial obligation or has the purpose of helping the Obligor or issuer of such Collateral Obligation avoid imminent default; provided that no Distressed Exchange shall be deemed to have occurred if the obligations or securities received by the Issuer in connection with such exchange or restructuring satisfy the definition of “Collateral Obligation” (provided that the Aggregate Principal Balance of all obligations and securities to which this proviso applies or has applied, measured cumulatively from the Closing Date onward, may not exceed 50% of the Target Initial Par Amount).
Distressed Exchange means, in connection with any Collateral Debt Obligation (or one or more Defaulted Obligations), an Offer or other debt restructuring has occurred, as reasonably determined by the Collateral Manager, pursuant to which the obligor of such Collateral Debt Obligation (or Defaulted Obligation) has issued to the holders of such Collateral Debt Obligation (or Defaulted Obligation) a security or obligation or package of securities or obligations that, in the sole judgment of the Collateral Manager, amounts to a diminished financial obligation or which has the purpose of helping the issuer of such Collateral Debt Obligation (or Defaulted Obligation) to avoid default.
Distressed Exchange. In connection with any Collateral Obligation, a distressed exchange or other debt restructuring has occurred, as reasonably determined by the Collateral Manager, pursuant to which the Obligor or issuer of such Collateral Obligation or any affiliate thereof has issued to the holders of such Collateral Obligation a new debt obligation or security or package of debt obligations or securities that, in the sole judgment of the Collateral Manager, amounts to a diminished financial obligation or has the purpose of helping the Obligor or issuer of such Collateral Obligation avoid imminent default; provided that each such security or debt obligation (i) shall not be subject to a “Distressed Exchange” and shall be treated as a Collateral Obligation that is not a Defaulted Obligation only if (x) such security or debt obligation satisfies the definition of Collateral Obligation and (y) the aggregate principal balance of all securities and debt obligations to which this clause (i) applies or has applied, measured cumulatively from the Closing Date, does not exceed 25.0% of the Target Initial Par Amount and (ii) in all other cases, any such (x) debt obligation shall be treated as a Collateral Obligation that is a Defaulted Obligation and (y) security shall be treated as an Equity Security.
Distressed Exchange. In connection with any Collateral Obligation, a distressed exchange or other debt restructuring has occurred, as reasonably determined by the Collateral Manager, pursuant to which the issuer or Obligor of such Collateral Obligation has issued to the holders of such Collateral Obligation a new security or package of securities or obligations that, in the sole judgment of the Collateral Manager, amounts to a diminished financial obligation or has the purpose of helping the issuer of such Collateral Obligation avoid default; provided that no Distressed Exchange shall be deemed to have occurred if the securities or obligations received by the Issuer in connection with such exchange or restructuring meet the definition of "Collateral Obligation".
Distressed Exchange. In connection with any Collateral Obligation, a distressed exchange or other debt restructuring has occurred, as reasonably determined by the Collateral Manager, pursuant to which the Obligor of such Collateral Obligation has issued to the holders of such Collateral Obligation a new obligation or security or package of obligations or securities that, in the sole judgment of the Collateral Manager, amounts to a diminished financial obligation or has the purpose of helping the Obligor of such Collateral Obligation avoid imminent default; provided that no Distressed Exchange shall be deemed to have occurred if the obligations or securities received by the Issuer in connection with such exchange or restructuring satisfy the definition of “Collateral Obligation” (provided that the Aggregate Principal Balance of all obligations and securities to which this proviso applies or has applied, measured cumulatively from the Closing Date onward, may not exceed 50% of the Target Initial Par Amount).
Distressed Exchange. In connection with any Collateral Obligation, a distressed exchange or other debt restructuring has occurred, as reasonably determined by the Collateral Manager, pursuant to which the issuer or Obligor of such Collateral Obligation has issued to the holders of such Collateral Obligation a new security or package of securities or obligations that, in the sole judgment of the Collateral Manager, amounts to a diminished financial obligation or has the purpose of helping the issuer of such Collateral Obligation avoid default; provided that no Distressed Exchange shall be deemed to have occurred if the securities or obligations received by the Issuer in connection with such exchange or restructuring meet the definition of “Collateral Obligation”.