While the popularity of cov-lite loans has prompted worries in some corners of the market, historically, these deals have not defaulted any more frequently than loans with traditional covenants.Then again, as naysayers are fond of pointing out, they’ve never comprised this much of the market before, so they will be under scrutiny once the current credit cycle turns.
Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Debtors’ Seventh Amended Joint Plan of Affiliated Debtors Pursuant to Chapter 11 of the United States Bankruptcy Code, dated December 12, 2011, as confirmed (including all exhibits thereto, as the same may be further amended, modified, or supplemented from time to time, the “D.
The Plan provides for the creation of a liquidating trust on or before the Effective Date to hold, manage and administer the Liquidating Trust Assets and distribute the proceeds thereof, if any, to the Liquidating Trust Beneficiaries, in accordance with the terms of this Trust Agreement, the Plan and the Confirmation Order. The Liquidating Trustee shall have all powers necessary to implement the provisions of this Trust Agreement and administer the Liquidating Trust, including, without limitation, the power to: (i) prosecute for the benefit of the Liquidating Trust Beneficiaries through Trust Professionals (as defined herein) any causes of action that may from time to time be held by the Liquidating Trust; (ii) preserve, maintain and liquidate the Liquidating Trust Assets; (iii) distribute the Liquidating Trust proceeds to the Liquidating Trust Beneficiaries; and (iv) otherwise perform the functions and take the actions provided for in this Trust Agreement or permitted in the Plan and/or the Confirmation Order or in any other agreement executed pursuant to the Plan, in each case of this Trust Agreement regarding limitation on the Liquidating Trustee and the oversight and consent rights of the Trust Advisory Board (as defined herein), the Litigation Subcommittee (as defined herein) and the Bankruptcy Court as provided for herein. The Liquidating Trust is organized for the sole purpose of liquidating and distributing the Liquidating Trust Assets, with no objective to conduct a trade or business except to the extent reasonably necessary to, and consistent with, the liquidating purpose of the Liquidating Trust.”), specifically Treasury Regulations section 301.7701-4(d) and, as such, as a “grantor trust” for United States federal income tax purposes with the Liquidating Trust Beneficiaries treated as the grantors and owners of the Liquidating Trust..
The trustee argued the article was void because it compromised ownership and property rights which tended to perpetuity, against the rule against perpetuities.
It requested an injunction against the share transfer at all, or at anything less than a fair value Farwell J rejected Borland Trustee’s argument and held the article was valid.
Steel Bros Ltd’s articles of association said if a member went bankrupt his shares would be transferred to designated persons at a fair price not above par value.
Mr JE Borland held 73 £100 shares and went bankrupt, and so the company gave Borland’s trustee in bankruptcy notice of the transfer.
07-10146(PJW) (representing Creditor Liquidity Asset Management) Equipment Financiers/Lessors Hussmann Corporation in Fleming Companies Transamerica Business Credit in Winstar Ingersoll-Rand Company in matters nationwide The Timken Company in matters nationwide CIT Communications in Olympus Healthcare Fiduciary Roles Delaware counsel to Vernon Tort Trustee in In re Exide Technologies In the Matter of Gizmondo Europa Limited (in Liquidation) - Expert Report to the British High Court of Justice, Chancery Division on fiduciary duties under Delaware law Appointed Chapter 11 Trustee in Optical Data Comm (commenced over 100 avoidance actions) Appointed Examiner in Moreshet Israel, Inc. Networks (Delaware Chancery Ct.) Chapter 15 Cases Co-counsel to Other Representative/Acquisition Matters Plastipak as acquirer of substantially all of the Constar's assets Newbold Equipment Service, as acquirer of assets/leases in Ameriking Co-counsel to the LTW Holders, Jeld-Wen, Inc. Van Brunt (In re Grossman's Inc.), 607 F.3d 114 (3d Cir. Coop./Mondragon Components, USA (owner of patent applications in DHP Holdings II Corporation) Tigon Studios, Inc.
(mechanic liens) in Land Source Communities Development LLC Fuji Photo U.
in Fleming Companies Bank of New York, as Indenture Trustee, in United Petroleum Merck & Co., Inc.
Covenant-lite loans, which offer less protection to institutional investors than do traditionally structured credits, continue to make up more and more of the 3 billion U. That’s the most ever, and is up from roughly 69% at year-end.
On the Effective Date, the Debtors shall transfer, for the sole benefit of the Liquidating Trust Beneficiaries, pursuant to Bankruptcy Code sections 1123(a)(5)(B) and 1123(b)(3)(B) and in accordance with the Plan and the Confirmation Order, the Liquidating Trust Assets to the Liquidating Trust, free and clear of any and all liens, claims, encumbrances and interests (legal, beneficial or, that the Liquidating Trust Assets may be transferred subject to certain liabilities, as provided in the Plan, Confirmation Order or as otherwise provided herein.