Keepwell Agreement Ecp

September 25, 2021

However, if the non-PCE is fully owned by PCEs (e.g. B where a non-ECP guarantor is a 100% subsidiary of an ECP parent company), the net assets of an owner of such a guarantee (e.g. B of the parent undertaking) within the meaning of Section 1a(18) (A) (v)III) (10) may be included in the net assets of the guarantor. the owners (parents) do not have to provide a Keepwell warranty or agreement. 14 As noted above, under the CEA`s technical rules, the Keepwell agreement could come from the borrower, but we wonder whether the TCRC will accept this position. Not only do the Keepwell agreements help the subsidiary and its parent company, but also strengthen the confidence of shareholders and bondholders in the subsidiary`s ability to meet its financial obligations and operate smoothly. Suppliers who supply raw materials also consider a struggling subsidiary more advantageous when it has a Keepwell deal. “qualified ecp guarantor” means, with respect to swap obligations, any party to the credit that, on the date on which the guarantee or grant of the corresponding collateral interest on that swap obligation takes effect, has total assets of more than $10,000,000 and another credit party that is a “lawful contractor” under the Commodity Exchange Act or the rules adopted under this law and to encourage others to qualify as a “legitimate participant in the contract”. this period by entering into a keepwell in accordance with section 1a(18)(A)(v)(II) of the Commodity Exchange Act. 9.16. Swap obligations. Each qualified ECP guarantor thus undertakes jointly and severally, unconditionally and irrevocably to provide the necessary resources or other assistance from time to time by any other party to the credit to fulfil all its obligations under the guarantee with regard to swap obligations (subject, in any case, to Section 3 of the guarantee).

The obligations of any eligible ecp guarantor in accordance with this section 9.16 shall remain in full force and effect until the performance of the guarantee referred to in section 24 (a). . . .