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A bankruptcy remote company is a company within a corporate group whose bankruptcy has as little economic impact as possible on other entities within the group. A bankruptcy remote company is often a single-purpose entity, and frequently deployed in the context of mortgage securitizations.[1][2]
In practice, due to the concept of limited liability, most companies in developed legal systems will be de facto bankruptcy remote from other members of the group (except in limited circumstances where creditors are permitted to pierce the corporate veil). However, in financial structuring, references to bankruptcy remoteness usually imply additional steps being taken to protect group members from attendant liability, such as by using an orphan structure to remove the legal ownership of the bankruptcy remote vehicle from the group, whilst retaining the economic benefits of it. Such structures are used where the vehicle's activities may give liability to the group as a whole, for example, under certain environmental protection legislation, or in relation to tax liabilities in certain countries.
^Fabozzi, Frank J. (2005-05-01). "The Structured Finance Market: An Investor's Perspective". Financial Analysts Journal. 61 (3): 27–40. doi:10.2469/faj.v61.n3.2725. ISSN 0015-198X. S2CID 154613747.
A bankruptcyremote company is a company within a corporate group whose bankruptcy has as little economic impact as possible on other entities within the...
Note 5. In Minnesota, No. Dakota, and Wisconsin, the cells are not bankruptcy-remote (that is, liabilities of one cell may become liabilities of others)...
a potential bankruptcy stemming from large losses in Countrywide hurting the parent organization by keeping Countrywide bankruptcyremote. Countrywide...
companies. Linqto uses SPVs because it is a separate company that is bankruptcyremote, allowing members to invest without needing to get on the cap table...
parties. BankruptcyRemoteness. The SPV lenders will want to ensure their securitisation vehicle is prevented from entering into a bankruptcy process thus...
placed its three major brands in KCD IP, a "separate, wholly-owned, bankruptcy-remote subsidiary". KCD stands for the three brands: Kenmore, Craftsman,...
recourse to the originator. The issuer is "bankruptcyremote", meaning that if the originator goes into bankruptcy, the assets of the issuer will not be distributed...
declares bankruptcy" even if the customer has paid off 90% of the property price. A workaround (with additional cost) is to establish "bankruptcy-remote" Special-purpose...
purpose company is a special type of company intended for use in bankruptcyremote bond issues, and which only has limited corporate capacity to undertake...
event of default even if the borrower has gone into bankruptcy, that is, the entity is "bankruptcyremote". Commercial mortgages may be recourse or non-recourse...
Land announced its Indentured Trustee Investment Model, offering a bankruptcyremote investment structure and stronger consumer protections for its investors...
Balance sheet – Ban – Bank – Bankrupt – Bankruptcy – Bankruptcy court – Bankruptcy proceedings – Bankruptcyremote – Bar – Bar association – Bar council –...
being required to adhere to significant new homeowner protections. Bankruptcyremote – a desired feature of vehicles like REMICS Chain of title 2007–2008...
loan transferred into an MBS (Mortgage-Backed Security) must become "bankruptcyremote" from the originating lender. That is, in the event the originating...
Retrieved March 26, 2021. "Crypto Firm Genesis Is Preparing to File for Bankruptcy". bloomberg.com. bloomberg.com. 19 January 2023. Retrieved 19 January...
payments to Inslaw and then pirating the software. Inslaw won damages in bankruptcy court, but these were overturned on appeal. The suit resulted in several...
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April 3, 2014, the company filed for bankruptcy under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware;...
home consoles, portable consoles, and personal computers. Human declared bankruptcy in 2000 and disbanded. Its former members went on to form new companies...
American global financial services firm founded in 1850. Before filing for bankruptcy in 2008, Lehman was the fourth-largest investment bank in the United States...
orphan structures, which is facilitated to support requirements for bankruptcyremoteness, which would not be appropriate in larger financial centres, as...
of the children will be reassessed. In June 2013, Rutherford filed for bankruptcy, stating she had debts of approximately $2 million, primarily due to the...
might file for Chapter 11 bankruptcy protection. On October 31, 2023, reports circulated that WeWork would be filing for bankruptcy "imminently", which resulted...
including Orphan structures, is facilitated to support requirements for Bankruptcyremoteness, which would not be allowed in larger financial centres, as it could...
1999. Zenith was the inventor of subscription television and the modern remote control, and was the first to develop high-definition television (HDTV)...
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