Common use of Effect of Insolvency Event Clause in Contracts

Effect of Insolvency Event. Subordination (a) If an Insolvency Event occurs: (i) the allocation of proceeds between the Super Senior Debt and Senior Debt shall be as set out in Clause 13 (Application of Recoveries); and (ii) the Subordinated Debt and the Intragroup Debt will be subordinated in right of payment to the Super Senior Debt and the Senior Debt. (b) The subordination provisions, to the extent permitted under the applicable law, in this Agreement shall remain in full force and effect by way of continuing subordination and shall not be affected in any way by any intermediate payment or discharge in whole or in part of any Debt. (a) After the occurrence of an Insolvency Event and until the Final Discharge Date, the Security Agent may: (i) accelerate, claim, enforce and prove for any Subordinated Debt and Intragroup Debt owed by such Group Company or Intragroup Debtor or make a demand under any guarantee or indemnity against loss in respect of such Subordinated Debt or Intragroup Debt; (ii) file claims and proofs, give receipts and take any proceedings or other action as the Security Agent considers necessary to recover that Subordinated Debt or Intragroup Debt; and (iii) receive all distributions on that Subordinated Debt or Intragroup Debt for application in accordance with Clause 13.1 (Order of Application). (b) If and to the extent that the Security Agent is not entitled, or elects not, to take any of the action mentioned in paragraph (a) above, each Subordinated Creditor or Intragroup Creditor will do so promptly on request by the Security Agent. (c) Each Subordinated Creditor and Intragroup Creditor irrevocably authorises the Security Agent to, on behalf of each Subordinated Creditor and Intragroup Creditor, take any action referred to in paragraph (a) above in respect of any Subordinated Debt or Intragroup Debt owed by a Group Company or Intragroup Debtor referred to in such paragraph and each Subordinated Creditor and Intragroup Creditor will provide all forms of proxy or other documents that the Security Agent may reasonably require for such purpose.

Effect of Insolvency Event. Subordination (a) If an Insolvency Event occurs: (i) the allocation of proceeds between the Super Senior Debt and Senior Debt shall be as set out in Clause 13 12 (Application of Recoveries); and (ii) the Shareholder Debt, the Subordinated Debt and the Intragroup Debt will be subordinated in right of payment to the Super Senior Debt and the Senior Debt. (b) The subordination provisions, to the extent permitted under the applicable law, in this Agreement shall remain in full force and effect by way of continuing subordination and shall not be affected in any way by any intermediate payment or discharge in whole or in part of any Debt. (a) After the occurrence of an Insolvency Event and until the Final Discharge Date, the Security Agent may: (i) accelerate, claim, enforce and prove for any Shareholder Debt, Subordinated Debt and Intragroup Debt owed by such Group Company or Intragroup Debtor or make a demand under any guarantee or indemnity against loss in respect of such Shareholder Debt, Subordinated Debt or Intragroup Debt; (ii) file claims and proofs, give receipts and take any proceedings or other action as the Security Agent considers necessary to recover that Shareholder Debt, Subordinated Debt or Intragroup Debt; and (iii) receive all distributions on that Shareholder Debt, Subordinated Debt or Intragroup Debt for application in accordance with Clause 13.1 12.1 (Order of Application). (b) If and to the extent that the Security Agent is not entitled, or elects not, to take any of the action mentioned in paragraph (a) above, each Shareholder Creditor, Subordinated Debt Creditor or Intragroup Creditor will do so promptly on request by the Security Agent. (c) Each Shareholder Creditor, Subordinated Debt Creditor and Intragroup Creditor irrevocably authorises the Security Agent to, on behalf of each Shareholder Creditor, Subordinated Debt Creditor and Intragroup Creditor, take any action referred to in paragraph (a) above in respect of any Shareholder Debt, Subordinated Debt or Intragroup Debt owed by a Group Company or Intragroup Debtor referred to in such paragraph and each Shareholder Creditor, Subordinated Debt Creditor and Intragroup Creditor will provide all forms of proxy or other documents that the Security Agent may reasonably require for such purpose.