Examples of Term Loan Secured Claim in a sentence
In general, to the extent that any exchange consideration received pursuant to the Plan by a U.S. Holder of a Term Loan Secured Claim, IPCo Notes Claim, Ongoing Trade Claim, or Other General Unsecured Claim is received in satisfaction of accrued interest or OID during its holding period, such amount will be taxable to the U.S. Holder as interest income (if not previously included in the U.S. Holder’s gross income).
The holder of the Prepetition Term Loan Secured Claim was indefeasibly paid $15,000,000 on account of the Prepetition Term Loan Secured Claim pursuant to the DIP Order from the proceeds of the DIP Facility.
Another possible characterization is that the receipt and exercise of the Joinder Right could be treated as an integrated transaction pursuant to which a portion of the New Term Loans, New Equity Allocation and New Warrants is acquired directly in partial satisfaction of a holder’s Term Loan Secured Claim or IPCo Notes Claim.
The characterization of the Joinder Right and its subsequent exercise for U.S. federal income tax purposes— as the exercise of an option to acquire an investment unit comprised of a portion of the New Term Loans, New Equity Allocation or New Warrants or, alternatively, as an integrated transaction pursuant to which a portion of the New Term Loans, New Equity Allocation and New Warrants is acquired directly in partial satisfaction of a holder’s Term Loan Secured Claim or IPCo Notes Claim—is uncertain.
If the Asset Sale Restructuring occurs, each Holder of an Allowed Term Loan Secured Claim shall receive its Pro Rata share of the Distribution Proceeds available for distribution to Holders of Allowed Term Loan Secured Claims from time to time as provided in Article VIII.G hereof, until such Allowed Term Loan Secured Claims are paid in full.
To the extent that the transactions undertaken pursuant to the Plan constitute a Taxable Transaction, a U.S. Holder of an Allowed Term Loan Secured Claim would be treated as exchanging its Claims for the New Gymboree Common Shares and, if applicable, Subscription Rights in a fully taxable exchange under section 1001 of the Tax Code.
In full satisfaction of and in exchange for each Allowed Prepetition Term Loan Secured Claim, each holder of a Prepetition Term Loan Secured Claim will receive a Pro Rata share of the Prepetition Term Loan Distribution.
A U.S. Holder of a Prepetition Term Loan Secured Claim generally will be treated as having exchanged its Prepetition Term Loan Secured Claim for its Pro Rata Share of the New Units in an exchange governed by Section 721 of the Tax Code in which no gain or loss is realized (except as described below in “—Accrued Interest”).
If the Joinder Right is treated as a recovery on the Term Loan Secured Claims and the IPCo Notes Claims, the fair market value of the Joinder Right would be taken into account in determining a U.S. Holder’s gain or loss with respect to its Term Loan Secured Claim or IPCo Notes Claim, as applicable, and a U.S. Holder would have a tax basis in the Joinder Right equal to the fair market value of the Joinder Right.
In addition, a U.S. Holder of a Term Loan Secured Claim or an IPCo Notes Claim will have ordinary interest income to the extent of any exchange consideration allocable to accrued but unpaid interest or accrued OID not previously included in income in respect of the Term Loan or IPCo Note, as applicable.