Examples of Retained Debt in a sentence
In consideration of the Retained Debt, Melcor received 9,454,411 Class C LP Units of Melcor REIT Limited Partnership (the “Partnership”), a subsidiary of the REIT, on which priority distributions are made to permit Melcor to satisfy required principal and interest payments.
The sales price was settled through the REIT's assumption of$31,038 in mortgages payable; issuance of 1,331,167 Class C LP units, representing $13,312 in Retained Debt by Melcor; issuance of 283,447 Class B LP units at price of $8.82, representing $2,500; and cash of $34,025.
These Class C LP Units are redeemed as distributions paid on the units are applied against the Retained Debt principal.
The holder of the Class C LP Units, an entity wholly-owned and controlled by MPI, holds 22,978,700 Class C LP Units on which it receives priority distributions in amounts sufficient for MPI to make interest and principal payments, and payments of any other amount owing, on the Retained Debt.
The Corporation has indemnified the Partnership for any losses suffered by the Partnership in the event payments on the Retained Debt are not made as required, provided such losses are not attributable to any action or failure to act on the part of the Partnership.