Indebtedness of Subsidiaries Sample Clauses
The "Indebtedness of Subsidiaries" clause sets limits or conditions on the amount and types of debt that a company's subsidiaries are permitted to incur. Typically, this clause outlines specific thresholds, categories of permitted indebtedness, or requires lender consent before subsidiaries can take on new loans or financial obligations. For example, it may prohibit subsidiaries from borrowing above a certain amount or restrict them from granting security interests without approval. The core function of this clause is to protect the financial stability of the parent company and its lenders by preventing excessive or risky borrowing at the subsidiary level, thereby managing overall credit risk within the corporate group.
Indebtedness of Subsidiaries. The Borrower shall not permit any Subsidiary to create, incur, assume or suffer to exist any Indebtedness, except:
(a) Indebtedness owed to the Borrower or to another Subsidiary;
(b) obligations under Swap Contracts, provided that such obligations are (or were) entered into by such Subsidiary in the ordinary course of business for the purpose of directly mitigating risks associated with liabilities, commitments, investments, assets, or property held or reasonably anticipated by such Subsidiary, or changes in the value of securities issued by such Subsidiary, and not for purposes of speculation or taking a “market view;”
(c) Indebtedness secured by Liens permitted by Section 7.01(s), provided that the aggregate outstanding principal amount of such Indebtedness does not at any time exceed the amount permitted by such Section;
(d) Indebtedness existing at the time of acquisition of any new Subsidiary by the Borrower or by a then-existing Subsidiary of the Borrower; provided that such Indebtedness was not incurred in contemplation of, and was in existence prior to, such acquisition and that neither the Borrower nor any other Subsidiary of the Borrower has any liability under such Indebtedness (other than a Subsidiary of any Person so acquired); and
(e) Indebtedness of Subsidiaries of the Borrower (excluding Indebtedness otherwise permitted in clauses (a) through (d) of this Section 7.03) which does not exceed at any time an aggregate principal amount outstanding equal to fifteen percent (15%) of Consolidated Net Tangible Assets.
Indebtedness of Subsidiaries. None of the Wholly-Owned Subsidiaries (other than any Non-Recourse Subsidiaries) will create, incur, assume or suffer to exist with respect to such Subsidiary, any Indebtedness for Borrowed Money, except:
(a) Indebtedness for Borrowed Money under the Credit Documents and under Hedging Agreements with Hedging Creditors;
(b) Indebtedness for Borrowed Money of Subsidiaries specified in Schedule I and any refinancings, refundings, renewals, replacements or extensions thereof; provided that the aggregate principal amount of all such Indebtedness for Borrowed Money is not increased at the time of any such refinancing, refunding, renewal, replacement or extension except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing, refunding, renewal, replacement or extension;
(c) Indebtedness for Borrowed Money of any Person that becomes a Subsidiary of SNC or is merged or consolidated into a Subsidiary of SNC after the date of this Agreement, which Indebtedness for Borrowed Money is existing at the time such Person becomes a Subsidiary of SNC or at the time of such merger or consolidation, as the case may be (other than Indebtedness for Borrowed Money incurred solely in contemplation of such Person becoming a Subsidiary of SNC);
(d) Indebtedness for Borrowed Money owed to SNC or to other Subsidiaries of SNC;
(e) reimbursement obligations of a Wholly-Owned Subsidiary in respect of Letters of Credit issued for the account of such Wholly-Owned Subsidiary in the ordinary course of such Subsidiary’s business;
(f) Indebtedness for Borrowed Money in respect of Capital Leases, Purchase Money Security and other Permitted Liens;
(g) daylight loans forming part of tax planning transactions to the extent that such daylight loans are reimbursed or set off on the day they are incurred;
(h) overdrafts or negative balances of bank accounts to the extent that these overdrafts or negative balances are set off through a Cash Pooling Arrangement;
(i) Indebtedness for Borrowed Money under the CDPQ Loan and a Guarantee by SNC-Lavalin Inc. of the obligations of Highway Holdings under the CDPQ Loan to the extent the recourses under that Guarantee are limited to shares of Highway Holdings and, if shares of 407 International Inc. are transferred to SNC-Lavalin Inc., to the shares so transferred.
(j) Indebtedness for Borrowed Money under any Permitted Monetization Transaction; and
(k) unsecured I...
Indebtedness of Subsidiaries of the Borrower owing to the Borrower or to other Subsidiaries of the Borrower and Indebtedness of the Borrower owing to any of the Designated SBG Subsidiaries; provided that any Indebtedness of the Borrower owing to any Subsidiary that is not a Guarantor (i) shall be made pursuant to an intercompany note in the form and substance satisfactory to the Administrative Agent and shall be subordinated in right of payment from and after such time as the Loans shall become due and payable (whether at maturity, acceleration or otherwise) to the payment and performance of the Obligations and (ii) that is disposed, pledged or transferred (other than a disposition, pledge or transfer to a wholly-owned Subsidiary or a pledge to benefit the Secured Parties or the holders of the Initial Second Priority on a second-priority basis) will be deemed to be Indebtedness not permitted by this clause (c);
Indebtedness of Subsidiaries of the Borrower to the Borrower; and
Indebtedness of Subsidiaries. The Company will not at any time permit any Subsidiary, directly or indirectly, to create, incur, assume, guarantee, have outstanding, or otherwise become or remain directly or indirectly liable for, any Indebtedness other than:
(a) Indebtedness outstanding as of the date of this Agreement that is described on Schedule 10.3 and any extension, renewal, refunding or refinancing thereof, provided that the principal amount outstanding at the time of such extension, renewal, refunding or refinancing is not increased;
(b) Indebtedness owed to the Company or a Wholly Owned Subsidiary;
(c) Indebtedness of a Subsidiary outstanding at the time of its acquisition by the Company, provided that (i) such Indebtedness was not incurred in contemplation of becoming a Subsidiary, (ii) at the time of such acquisition and after giving effect thereto, no Default or Event of Default exists or would exist, and (iii) such Indebtedness may not be extended, renewed, refunded or refinanced except as otherwise permitted herein;
(d) Indebtedness of a Subsidiary (i) under any Guaranty Agreement and (ii) under a Primary Credit Facility so long as such Subsidiary is a Subsidiary Guarantor party to an effective Guaranty Agreement;
(e) Indebtedness not otherwise permitted by the preceding clauses (a) through (d), provided that immediately before and after giving effect thereto and to the application of the proceeds thereof:
(i) no Default or Event of Default exists; and
(ii) Priority Debt does not exceed 20% of Consolidated Net Worth (as of the end of the Company’s then most recently completed fiscal quarter).
Indebtedness of Subsidiaries. The Company will not permit the sum of (a) the aggregate outstanding principal amount of Indebtedness of Subsidiaries (other than Permitted Subsidiary Indebtedness) and (b) Specified Company Indebtedness at any time to exceed 15% of Consolidated Net Assets.
Indebtedness of Subsidiaries. 38 6.4 Liens..........................................................................................38 6.5
Indebtedness of Subsidiaries. Incur, create, assume or permit to exist any Indebtedness of any Subsidiary of the Guarantor, howsoever evidenced, except:
(a) Indebtedness of any corporation outstanding at the time such corporation becomes a Subsidiary and not created in contemplation of such event;
(b) Indebtedness of any corporation outstanding at the time such corporation is merged or consolidated with or into a Subsidiary and not created in contemplation of such event;
(c) Indebtedness secured by a Lien permitted by Section 8.2 hereof;
(d) Indebtedness owing to the Guarantor or a Wholly Owned Subsidiary; and
(e) Indebtedness not otherwise permitted by the foregoing clauses of this Section in an aggregate outstanding principal amount for all Subsidiaries at no time exceeding $450,000,000. The foregoing is subject to the further limitations that (i) for purposes of this Section, any preferred stock of a Subsidiary held by a Person other than the Guarantor or a Wholly Owned Subsidiary shall be included, at the higher of its voluntary or involuntary liquidation value, in the Indebtedness of such Subsidiary and (ii) Indebtedness permitted by this Section does not include a refunding, renewal or extension of such Indebtedness so that any such new Indebtedness must fall independently within one of the above exceptions.
Indebtedness of Subsidiaries. No Subsidiary has any Indebtedness other than (a) on terms that limit recourse for the payment thereof to the real property or other assets of the Subsidiary securing such Indebtedness, provided that the assets securing such Indebtedness were acquired or developed with the proceeds of such Indebtedness, (b) such Indebtedness that is owed by a SPE Subsidiary, or (c) Indebtedness permitted under Section 8.04, 8.06 or 8.07 hereof.
Indebtedness of Subsidiaries. 48 SECTION 6.03.