RESTRUCTURING OF CONTRACTS. Section 3.1 ELNY Restructured Values for Contracts. As set forth in detail in Schedule 3.1 hereto, each Contract shall have a Liquidation Value assigned to such Contract, which will then be multiplied by the Liquidation Asset Percentage to yield the “ELNY Restructured Value” for such Contract. The Order Approving this Agreement shall include a provision that reduces the liabilities under each Contract to the ELNY Restructured Value for such Contract, and also reduces each Benefit Payment under such Contract by multiplying such Benefit Payment by the Liquidation Asset Percentage, with such reduced benefits subsequently enhanced as described herein and in Schedule 3.1. The difference between the Liquidation Value assigned to each such Contract and its ELNY Restructured Value shall be a deemed indebtedness of ELNY to the Contractowner (or to any PGA covering a Covered Contract to the extent of such coverage), which indebtedness shall not be a Transferred Liability or otherwise a liability of NEWCO, and shall be a Retained Liability of ELNY. Such indebtedness, to the extent it remains unpaid and unfunded, shall only be discharged pursuant to any future order of the Receivership Court discharging the Receiver and closing the ELNY Estate.
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