Inability to pay debts definition
Inability to pay debts. Any of the following is true:
(i) Any Obligor is unable to pay its debts as they fall due.
(ii) The value of its assets is less than the amount of its liabilities (taking into account its contingent and prospective liabilities).
(iii) Any Obligor admits its inability to pay its debts as and when they fall due or seeks a composition or arrangement with its creditors or any class of them.
Inability to pay debts. A member of the Borrower's Restricted Group:
(i) is unable to pay its debts as they fall due within the meaning of section 123(1) of the Insolvency ▇▇▇ ▇▇▇▇ unless, in the case of section 123(1)(a) only, a statutory notice has been withdrawn, stayed or dismissed within 21 days;
(ii) admits its inability to pay its debts as and when they fall due or seeks a composition or arrangement with its creditors or any class of them; or
(iii) suspends payments of its debts as they fall due, or the value of the assets of a member of the Borrower's Restricted Group is less than the amount of its liabilities, taking into account its contingent and prospective liabilities at their valued amounts, calculated in accordance with Generally Accepted Accounting Principles.
Inability to pay debts. Any of the following is true:
(i) Any Obligor or any Material Subsidiary is unable to pay its debts as they fall due.
(ii) The value of its assets is less than the amount of its liabilities (taking into account its contingent and prospective liabilities) to the extent that this gives a creditor of such Obligor or Material Subsidiary the rights under the jurisdiction of the Obligor or Material Subsidiary to commence proceedings under bankruptcy, insolvency or similar laws.
(iii) Any Obligor or any Material Subsidiary admits its inability to pay its debts as and when they fall due or seeks a composition or arrangement with its creditors generally or any class of them. For the purpose of this paragraph and of the definition of "Material Subsidiary" as it is used in this paragraph, Media Planning and its Subsidiaries will be treated as Subsidiaries of the Parent. This paragraph (H) will not apply to any Obligor or Material Subsidiary incorporated in any State of the United States of America.
Examples of Inability to pay debts in a sentence
Any event occurs or proceeding is taken with respect to any Group Company in any jurisdiction to which it is subject which has an effect equivalent or similar to any of the events mentioned in Clause 15.1.7 (Inability to pay debts), 15.1.8 (Insolvency proceedings) or 15.1.9 (Adjudication or appointment).