Template:Gmsla 10.1(d) summ

Here is the definition of {{{{{1}}}|Act of Insolvency}}:

{{{{{1}}} Gmsla Act of Insolvency definition}}

Keen-eyed observers will note that some of these are more like insolvency events and others more like bankruptcy events. The ISDA Master Agreement makes a similar mistake. We could do the same exercise:

Practical insolvency events: (a) (entering a composition with creditors) (b) (admitting it cannot pay its debts)

True bankruptcy events: (c) (seeking the appointment of an administrator) (d) (presentation of a formal bankruptcy petition) (e) (a liquidator being appointed)

Hybrid events: (f) (discussing a voluntary arrangement)

Observers will also note that the ISDA is more detailed. We compare and contrast in the Premium section.

The 2010 GMSLA (but not the 2018 Pledge GMSLA) has an ISDA-style Automatic Early Termination trigger. There is more on this in the premium section, but those wanting a deep background on the concept — there is a lot of deep background, so strap yourself in for a long night — should consult the ISDA page on that topic, here: Automatic Early Termination.