"Crisil understands that many of the investors in NCDs with acceleration clauses
have not yet exercised their acceleration rights.
The loan will expire in 2024, creating refinancing risk, and also contains acceleration clauses
. Fitch views these terms negatively as it places a significant amount of control with the bank as certain events of default can be cured or waived by the bank to prevent an acceleration of debt.
"The CreditWatch reflects our view of an increasing risk of Mozambique on its debt, either as a result of higher-than-expected debt service obligations, or due to acceleration clauses
in the government's external commercial debt.
In many states, longstanding principles of res judicata, when taken with the state law's treatment of acceleration clauses
, require courts to grant homeowners "free houses" when banks lose their foreclosure cases.
Moody's notes that, while MTS does not have any cross default and cross acceleration clauses
relating to Sistema, there is a change of control clause in MTS's Eurobond documentation, which gives bondholders the right to put the bonds if more than 50% of MTS's shares are transferred from Sistema to another controlling shareholder.
1991) ("acceleration clauses
'serve a valid business purpose'").
Over the years Telecom Italia has pursued a prudent approach to financial risk management, maintaining a liquidity margin at least equal to the debt due in the next 18/24 months - at the end of June the liquidity margin was 12.8 billion and adopting contractual documentation for its refinancing that does not contain capital repayment step-up nor rating-related acceleration clauses
While acceleration clauses
provide owners with a leg-up in any lease break negotiation, the advantage is particularly powerful when an owner does not want the tenant to break because the owner can leverage the tenant's liability to its advantage and demand a cash payment for the tenant's departure.
Specific areas requiring close attention in the due diligence process were the asset/liability measurement tests, income acceleration, hedge identification, tax indemnities and gross ups, acceleration clauses
, and rating triggers.
Subjective acceleration clauses
in debt instruments.
The concept of subjective acceleration clauses
is first addressed in FASB Statement No.
The assigned ratings also capture the refinancing risks that Acapulco faces stemming from the right of the lenders to trigger acceleration clauses
. Acapulco's outstanding long term debt consists of two enhanced