equity cure right

equity cure right
USA
A provision that may be agreed to in certain loan agreements that permits the financial sponsor (or a parent company) to transfer cash to the borrower (generally within 10 days after delivery of financial statements) to increase the amount of EBITDA for purposes of determining compliance with the financial covenants (but for no other purpose). This transfer may be in the form of a cash contribution to the borrower or the purchase of equity in the borrower.
Lenders agreed to this provision at the request of financial sponsors prior to the financial crisis but were less willing to permit the equity cure right as of the end of 2009.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • equity cure — United Kingdom A provision in a facility agreement which permits the shareholders of the borrower to inject additional equity into the borrower to cure a financial covenant breach arising because of a shortfall in cash flow or, sometimes, EBITDA …   Law dictionary

  • equity of redemption — 1: the right of a defaulting mortgagor to redeem the mortgaged property before an absolute foreclosure 2: the interest or estate remaining to a mortgagor in mortgaged property; also: the value of such interest Merriam Webster’s Dictionary of Law …   Law dictionary

  • right — / rīt/ n [Old English riht, from riht righteous] 1 a: qualities (as adherence to duty or obedience to lawful authority) that together constitute the ideal of moral propriety or merit moral approval b: something that is morally just able to… …   Law dictionary

  • right — adj 1. good, just, fair, impartial, equitable, reasonable; righteous, upright, virtuous, moral, ethical; honorable, noble, high minded, scrupulous, principled, right minded; honest, Inf. square, Inf. fair and square, straightforward, aboveboard,… …   A Note on the Style of the synonym finder

  • Foreclosure — For Lacan s psychoanalytic process, see Foreclosure (psychoanalysis). House in Salinas, California under foreclosure, following the popping of the U.S. real estate bubble. Foreclosure is the legal process by which a mortgage lender (mortgagee),… …   Wikipedia

  • Health care reform in the United States — ] Current estimates put U.S. health care spending at approximately 16% of GDP. [http://www.cms.hhs.gov/NationalHealthExpendData/25 NHE Fact Sheet.asp#TopOfPage National Health Expenditure Data: NHE Fact Sheet, ] Centers for Medicare and Medicaid… …   Wikipedia

  • Texas constitutional amendment election 2007 — The 2007 Texas Constitutional Amendment Election took place 6 November 2007.Sixteen proposed amendments (propositions) appeared on the ballot all of which were approved by the voters. About 1,088,137 voters statewide went to the polls, out of… …   Wikipedia

  • United States — a republic in the N Western Hemisphere comprising 48 conterminous states, the District of Columbia, and Alaska in North America, and Hawaii in the N Pacific. 267,954,767; conterminous United States, 3,022,387 sq. mi. (7,827,982 sq. km); with… …   Universalium

  • remedy — rem·e·dy 1 n pl dies: the means to enforce a right or to prevent or obtain redress for a wrong: the relief (as damages, restitution, specific performance, or an injunction) that may be given or ordered by a court or other tribunal for a wrong if… …   Law dictionary

  • India — /in dee euh/, n. 1. Hindi, Bharat. a republic in S Asia: a union comprising 25 states and 7 union territories; formerly a British colony; gained independence Aug. 15, 1947; became a republic within the Commonwealth of Nations Jan. 26, 1950.… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”