Conversion Solely Following an Event of Default Sample Clauses

The "Conversion Solely Following an Event of Default" clause restricts the right to convert a debt or security into another form, such as equity, to situations where an event of default has occurred. In practice, this means that holders cannot exercise conversion rights under normal circumstances, but only if the issuer fails to meet certain obligations, such as missing payments or breaching covenants. This clause serves to protect investors by providing them with a remedy in the event of default, while also preventing premature or opportunistic conversions that could disrupt the issuer's capital structure.