Dq List Credit Agreement
The definition of disqualified lenders contains (x) a list of entities identified by the borrower at the time of the commitment or conclusion and, in some cases, updated with additional entities identified by the borrower during the term of the loan and (y) the “affiliates” of an entity identified and mentioned under the clause (x); and regardless of how the dust clears definitively in the negotiation or previous settlement of this case, it is likely that Mr. Ergen would have strayed from the acquisition of more than $1 billion of LightSquared`s debt with his own money and the execution of LiqhtSquared credit purchases through SPSO, and it is almost certain that the damage, damage and undisputed costs, which are borne by all parties, could have been avoided if the LightSquared credit contract had been carefully and clearly developed to allow this! Please sign up for our mailing list and tell us what types of notifications you would like to receive from us. In recent years, borrowers of loan-financed loans have attempted to include “Disqualified Lender” provisions in their credit contracts. Approximately two-thirds of the most recent credit contracts contained such provisions.  The objective is to prevent competitors and other “friendships” from infiltrating the borrower`s superior capital structure and preventing them from having access to confidential information or becoming a source of absurdization in the event of necessary modification, formation, restructuring or bankruptcy. This objective can be achieved by formulating the credit contract carefully and unequivocally to expressly provide:  According to section 502 (b) of the Bankruptcy Act, the court may prohibit all or part of a creditor`s claim if “this claim is unenforceable against the debtor and the debtor`s property for any reason other than the reason or inevlement of that claim.” In order to raise the funds necessary to set up the ATC network, LightSquared entered into a credit agreement of October 10, 2010 (the “credit contract”), with UBS AG, Stamford Branch as a director (the “management agent”) and the companies that served or served as “lenders” under the credit contract. On August 8, 2014, the Loan Syndication and Trading Association (“LSTA”) issued amendments to the Standard Credit Agreement Provisions (“MCAPs”). McAPs now provide a structure for a borrower to identify “disqualified institutions” that are not eligible to become lenders under the transfer or equity credit agreement (“DQ structure”). MCAP revisions add standard provisions for credit buybacks by the borrower and associated lenders (e.g. B, private equity sponsors), refinancings and scriptural roles, and transaction changes and extensions.
The DQ structure also streamlines the trading process in the secondary market, as more borrowers choose to establish DQ lists for their credit facilities. The administrator has the right, and the borrower expressly authorizes the administrative officer to publish on the platform the DQ list provided by the borrower and all updates that are provided from time to time (together the DQ list), including the part of the platform intended for “public” lenders and/or (B) that provides the DQ list to any lender who requests it.
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