Examples of Subordinated Debt Agreements in a sentence
LBHI submits as follows:(1) The Subordinated Debt is provable in LBIE’s administration (and would be provable in any liquidation of LBIE) in accordance with the Rules.(2) It is common ground that section 74(2)(f) of the Act does not apply and does not affect the position: see paragraphs 11 - 13 above.(3) There is nothing in the terms of the Subordinated Debt Agreements themselves which prevents LBHI2 from proving in LBIE’s administration or any subsequent liquidation in respect of the Subordinated Debt.
In summary, LBHI2 submits that the Judge erred in giving (1) insufficient weight to the relevant structure of the English insolvency regime in construing the Subordinated Debt Agreements, (2) insufficient weight to the wording of the FSA Rules in force at the time of LBIE’s administration; and (3) too much weight to a vague concept of the ‘regulatory background’3.
SUBORDINATED DEBTSubordinated debt comprises: Subordinated debt from the ParticipantUSD TOTAL 630 691460 525 In accordance with the Subordinated Debt Agreements, in the event of bankruptcy or liquidation of the Bank, repayment of this debt is subordinate to the repayments of the Bank’s liabilities to all other creditors.For the purposes of RAS capital adequacy calculations, the carrying amount of subordinated debt is included in the amount of additional capital (Note 22).
LBIE contends that the Subordinated Debt Agreements alter this order of priority, so that one provable debt (viz the Subordinated Debt) is relegated from the fifth tier to a lower tier (it is not clear whether it is said to be payable before or after non-provable liabilities and shareholders).
It cannot be the source of any right or the creator of any obligation.