Limited recourse: Difference between revisions
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**Here the intention is that you will never have legal grounds for seeking judgment, and thereafter commencing bankruptcy proceedings, for that unpaid amount once your own cell is fully unwound and its proceeds distributed. | **Here the intention is that you will never have legal grounds for seeking judgment, and thereafter commencing bankruptcy proceedings, for that unpaid amount once your own cell is fully unwound and its proceeds distributed. | ||
**'''Pendantry alert''': some sniff at this “extinction” language, fearing it implies that there was ''once upon a time'', until extinction, a debt for an amount which the company was theoretically unable to pay — meaning that the company was, for that anxious moment in time, [[technically insolvent]]. These people — some hail from [[Linklaters]] — prefer to say “no debt is due” than “the debt shall be extinguished”. | **'''Pendantry alert''': some sniff at this “extinction” language, fearing it implies that there was ''once upon a time'', until extinction, a debt for an amount which the company was theoretically unable to pay — meaning that the company was, for that anxious moment in time, [[technically insolvent]]. These people — some hail from [[Linklaters]] — prefer to say “no debt is due” than “the debt shall be extinguished”. | ||
*'''A proceedings covenant''': You must solemnly promise never to set to put the [[SPV]] into [[insolvency]] proceedings. If you agree to all the foregoing, you should have concluded you have no literal right to do so, so this | *'''A proceedings covenant''': You must solemnly promise never to set to put the [[SPV]] into [[insolvency]] proceedings. If you agree to all the foregoing, you should have concluded you have no literal right to do so, so this shouldn’t tax your conscience too greatly. | ||
{{sa}} | {{sa}} | ||