Further Backstop Election definition
Further Backstop Election means, in relation to a Backstop Party, an election (as set out in Part 1 (Backstop Parties) of Schedule 5 (Backstop Parties and Undertakings) in the case of an Initial Backstop Party and in its Accession Deed in the case of an Additional Backstop Party) to assume the Backstop Commitments that a Backstop Party is released from upon completion by it of a Permitted Transfer: (i) to a person that is neither its Affiliate nor another Backstop Party; and (ii) which results in the principal amount of its Senior Claims being less than the principal amount of its Backstop Claims.
Examples of Further Backstop Election in a sentence
The Backstop Commitments of such transferring Backstop Party shall instead be assumed by the Backstop Parties that have exercised their Further Backstop Election in accordance with paragraph 2 of Part 2 (Backstop Undertakings) of Schedule 4 (Backstop Parties and Undertakings).
Backstop Parties should also notify the Information Agent if they are exercising their Further Backstop Election by the Backstop Deadline.