Examples of Section 1145 Subscription Rights in a sentence
In accordance with the Section 1145 Rights Offering Procedures and the Backstop Commitment Agreement, each Section 1145 Eligible Holder shall receive Section 1145 Subscription Rights to acquire its respective Pro Rata Share of Section 1145 Rights Offering Stock pursuant to the terms set forth in the Plan and in the Section 1145 Rights Offering Procedures.
In accordance with the Section 1145 Rights Offering Procedures and the Backstop Commitment Agreement, each Section 1145 Eligible Holder shall receive Section 1145 Subscription Rights to acquire its respective Pro Rata Share of Section 1145 Rights Offering Stock pursuant to the terms set forth in this Plan and in the Section 1145 Rights Offering Procedures.
The Section 1145 Subscription Rights are not exercisable other than by a Section 1145 Eligible Holder.
In addition, if any portion of a Second Lien Note Claim is or has been transferred by an 1145 Eligible Participant after the 1145 Claim Determination Date, the corresponding Section 1145 Subscription Rights will be cancelled, and neither such Section 1145 Eligible Holder nor the transferee of such Second Lien Note Claim will receive any shares of Section 1145 Rights Offering Stock in connection with such transferred Second Lien Note Claims.
The Debtors believe that the value of the Section 1145 Securities being issued to Section1145 Eligible Holders pursuant to the Plan on account of their Second Lien Note Claims (excluding the Section 1145 Subscription Rights), and thus the value of the interests in any such Second Lien Note Claim to be exchanged pursuant to the Section 1145 Rights Offering, exceeds the value of the capital being raised pursuant to the exercise of the 1145 Subscription Rights.
The Section 1145 Subscription Rights are not detachable from Second Lien Note Claims, and are not transferable after the Record Date, or such later date as the Debtors may determine, with the consent of the Requisite Investors (the “1145 Claim Determination Date”).
The Plan provides for the offer, issuance, sale or distribution of shares of New Common Stock pursuant to the Second Lien Notes Equity Distribution and shares of Rights Offering Stock in connection with the exercise of the Section 1145 Subscription Rights (such shares, together with the shares of Top HoldCo Common Stock to be received in exchange for the contribution of such shares to Top HoldCo as contemplated by the Plan, the “Section 1145 Securities”).