New CNC Preferred Stock definition

New CNC Preferred Stock means Class A Preferred Stock of New CNC to be distributed on the Effective Date to the Holders of Allowed Claims in Classes 5A-1, 5A-2, 4B-1 and 4B-2 pursuant to the Plan with terms substantially as set forth in the Plan Supplement, and an initial liquidation preference equal to the Remaining Bank Debt Balance.

New CNC Preferred Stock means the Class A Preferred Stock of the Company to be issued to the Banks on the Effective Date pursuant to the Plan of Reorganization. Such term shall include any pay-in-kind dividends issued in respect of or accrued on the New CNC Preferred Stock from time to time in accordance with the terms thereof.

Examples of New CNC Preferred Stock in a sentence

• Any other provision of the Plan notwithstanding, payments of fractions of shares of New CNC Common Stock or New CNC Preferred Stock or fractions of New CNC Warrants will not be made and will be deemed to be zero.

• Pursuant to the Plan, the Lender Claims will be exchanged for the New Bank Debt, New CNC Preferred Stock and New CNC Warrants.

• The Chinese central bank however, remains optimistic projecting an economic growth between 5.1% to 5.7% until 2025 (Xie, 2022).Currently China is trying to escape the middle-income trap, which requires economic reforms.

• If the Lender Claims are not treated as securities or the Restructuring is not treated as a tax-free reorganization, Holders of Lender Claims will be treated as exchanging their Lender Claims for New Bank Debt, New CNC Preferred Stock and New CNC Warrants in a taxable exchange under Section 1001 of the Code.

• A Holder's holding period for New Bank Debt, New CNC Preferred Stock and New CNC Warrants should begin on the day following the Effective Date.

• Accordingly, a Holder of Lender Claims should recognize gain or loss equal to the difference between (i) the sum of (a) the fair market value of the New CNC Preferred Stock and New CNC Warrants received and (b) the "issue price" of the New Bank Debt received (provided such New CNC Preferred Stock, New CNC Warrants and/or New Bank Debt is not allocable to accrued but untaxed interest) and (ii) such Holder's basis in the Lender Claims.

• No dividends may be paid on any other class of capital stock unless full cumulative dividends have been paid on the New CNC Preferred Stock (subject to a to be agreed upon cap on the aggregate maximum amount of dividends that can be paid in additional shares).

• To the extent that a portion of the New Bank Debt, New CNC Preferred Stock or New CNC Warrants received in exchange for the Lender Claims is allocable to accrued but untaxed interest, the Holder may recognize ordinary income.

• Holders of Lender Claims, New Notes, 93/94 Notes and Trust Preferred Securities who exchange Lender Claims, New Notes, 93/94 Notes or Trust Preferred Securities for New Bank Debt, New CNC Preferred Stock, New CNC Common Stock, New Senior Notes or New CNC Warrants may be affected by the "market discount" provisions of Code Sections 1276 through 1278.

• Because the Plan provides that Holders of New Notes, Lender Claims and Trust Preferred Securities will receive New CNC Common Stock, New CNC Preferred Stock, New CNC Warrants and New Bank Debt, the amount of COD Income, and accordingly the amount of tax attributes required to be reduced, will depend on the fair market value of the New CNC Common Stock, New CNC Preferred Stock, New CNC Warrants and the issue price of New Bank Debt.