Examples of Second Out Term Loan in a sentence
In this instance, an Irish Holder of First Lien Debt Claims will have a tax basis in Class A Shares and the New Second Out Term Loan received in satisfaction of its First Lien Debt Claims equal to the fair market value of such interests and rights.
Interest expenses (whether paid or accrued) under the New Second Out Term Loan would be tax deductible, subject to arm’s length considerations and interest deduction limitation rules.
A U.S. Holder’s adjusted tax basis in the New Second Out Term Loan generally will be the issue price of the New Second Out Term Loan, increased by OID and any market discount previously included in income, and reduced by any amortized premium and any cash payments previously received on the New Second Out Term Loan.
Further, the Debtors have not conducted appraisals of any of their assets constituting collateral to determine if the value of the collateral upon foreclosure or liquidation equals or exceeds the amount of the New First Out Term Loan Facility and New Second Out Term Loan Facility or such other obligation secured by the Collateral.
If so treated, each Irish Holder of First Lien Debt Claims generally will recognize a gain or loss upon the exchange of its First Lien Debt Claims for Class A Shares and Second Out Term Loan.
The liability under the New Second Out Term Loan would be deductible for NWT purposes to the extent that it finances the receivable(s) or other taxable assets for NWT purposes.
Accordingly, it cannot be assured that the remaining proceeds from a sale of the Collateral would be sufficient to repay holders of the securities under the New First Out Term Loan Facility and New Second Out Term Loan Facility all amounts owed under them.
Defects in Collateral Securing the New First Out Term Loan Facility and New Second Out Term Loan Facility The indebtedness under the New First Out Term Loan Facility and New Second Out Term Loan Facility will be secured, subject to certain exceptions and permitted liens, on a first-priority basis by security interests in substantially all assets of the Reorganized Debtors (henceforth, the “Collateral”).
On the Effective Date, on a consolidated basis, it is expected that the Reorganized Debtors will have total secured indebtedness of approximately $585 million, which is expected to consist of the New First Out Term Loan Facility, the New Second Out Term Loan Facility and the Exit AR Facility.
An inability to generate sufficient cash flow to satisfy their debt obligations or to obtain alternative financing could materially and adversely affect the Reorganized Debtors’ ability to make payments on the New First Out Term Loan Facility and New Second Out Term Loan Facility and their business, financial condition, results of operations, and prospects.