Material Indebtedness definition: Copy, customize, and use instantly
Introduction
The term "Material Indebtedness" refers to the aggregate amount of outstanding debts or obligations that are significant to a company’s financial health and operations. Typically, this includes loans, bonds, or other financial obligations that could have a substantial impact on the company’s ability to function or its solvency.
Below are various examples of how "Material Indebtedness" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Material Indebtedness" for debt obligations
This definition ties "Material Indebtedness" to debt obligations.
"Material Indebtedness" means any debt or financial obligation of the company that exceeds [specific amount], which is material to the company’s financial condition, operations, or cash flow.
Definition of "Material Indebtedness" for borrowing limits
This definition connects "Material Indebtedness" to borrowing limits.
"Material Indebtedness" refers to any debt, borrowing, or financial obligation that exceeds the company’s approved borrowing limits as set forth in the financing agreement.
Definition of "Material Indebtedness" for covenants
This definition links "Material Indebtedness" to covenants.
"Material Indebtedness" means any outstanding indebtedness or financial obligation that, if not paid, could trigger default under any material contract, agreement, or financial covenant.
Definition of "Material Indebtedness" for financial ratios
This definition applies "Material Indebtedness" to financial ratios.
"Material Indebtedness" refers to any debt that significantly impacts the company’s financial ratios, such as its leverage ratio, debt-to-equity ratio, or liquidity ratios.
Definition of "Material Indebtedness" for credit agreements
This definition ties "Material Indebtedness" to credit agreements.
"Material Indebtedness" means any amount of debt that, under the terms of the credit agreement, could affect the company’s creditworthiness or the terms of future borrowing.
Definition of "Material Indebtedness" for legal liabilities
This definition connects "Material Indebtedness" to legal liabilities.
"Material Indebtedness" refers to any legal or financial liability that has a material effect on the company’s financial stability or could affect its ability to meet other obligations.
Definition of "Material Indebtedness" for ermgers and acquisitions
This definition links "Material Indebtedness" to mergers and acquisitions.
"Material Indebtedness" means any outstanding debt or financial obligation that must be disclosed in the context of a merger or acquisition, as it could significantly affect the value or negotiation of the deal.
Definition of "Material Indebtedness" for cross-border financing
This definition applies "Material Indebtedness" to cross-border financing.
"Material Indebtedness" refers to any substantial debt or financial obligation that involves international or cross-border financing, which could have a material impact on the company’s global operations.
Definition of "Material Indebtedness" for default risk
This definition ties "Material Indebtedness" to default risk.
"Material Indebtedness" means any debt or obligation that exposes the company to a significant risk of default or the inability to service debt obligations under normal circumstances.
Definition of "Material Indebtedness" for unsecured debt
This definition connects "Material Indebtedness" to unsecured debt.
"Material Indebtedness" refers to any unsecured debt or obligation that has a significant impact on the company’s operations or financial position.
Definition of "Material Indebtedness" for financial restructuring
This definition links "Material Indebtedness" to financial restructuring.
"Material Indebtedness" means any outstanding debt obligations that may require the company to undergo financial restructuring or renegotiation to maintain solvency.
Definition of "Material Indebtedness" for collateral requirements
This definition applies "Material Indebtedness" to collateral requirements.
"Material Indebtedness" refers to any debt for which the company has pledged significant collateral, making it material to the company’s assets and financial position.
Definition of "Material Indebtedness" for debt-to-equity ratio
This definition ties "Material Indebtedness" to the debt-to-equity ratio.
"Material Indebtedness" means any outstanding debt that causes the company’s debt-to-equity ratio to exceed a specified threshold, affecting the company’s financial stability.
Definition of "Material Indebtedness" for loan agreements
This definition connects "Material Indebtedness" to loan agreements.
"Material Indebtedness" refers to any loan or financial obligation under an agreement that exceeds a material amount and could significantly impact the company’s financial operations.
Definition of "Material Indebtedness" for regulatory requirements
This definition links "Material Indebtedness" to regulatory requirements.
"Material Indebtedness" means any debt or financial obligation that is subject to specific regulatory reporting, including obligations that require disclosures under securities laws or financial regulations.
Definition of "Material Indebtedness" for debt service
This definition applies "Material Indebtedness" to debt service.
"Material Indebtedness" refers to any debt obligation that requires significant debt service payments, which could have a material impact on the company’s cash flow and operational capacity.
Definition of "Material Indebtedness" for subordinated debt
This definition ties "Material Indebtedness" to subordinated debt.
"Material Indebtedness" means any subordinated debt obligation that could impact the senior debt structure or trigger cross-default provisions under other debt agreements.
Definition of "Material Indebtedness" for loan default
This definition connects "Material Indebtedness" to loan default.
"Material Indebtedness" refers to any outstanding loan or financial obligation that, if defaulted, would cause significant disruption to the company’s financial position and operations.
Definition of "Material Indebtedness" for credit facilities
This definition links "Material Indebtedness" to credit facilities.
"Material Indebtedness" means any financial obligation or credit facility that exceeds a material threshold and is integral to the company’s ability to operate effectively and meet financial goals.
Definition of "Material Indebtedness" for debt covenants
This definition applies "Material Indebtedness" to debt covenants.
"Material Indebtedness" refers to any debt or obligation subject to covenants that, if violated, could result in default or acceleration of the indebtedness.
Definition of "Material Indebtedness" for bankruptcy
This definition ties "Material Indebtedness" to bankruptcy.
"Material Indebtedness" means any financial obligation whose failure to meet the terms could trigger bankruptcy proceedings or significant legal consequences.
Definition of "Material Indebtedness" for bond issuances
This definition connects "Material Indebtedness" to bond issuances.
"Material Indebtedness" refers to any bond issuance or debt instrument that exceeds a material amount and could have a significant effect on the company’s financial outlook or bond ratings.
Definition of "Material Indebtedness" for debt restructuring
This definition links "Material Indebtedness" to debt restructuring.
"Material Indebtedness" means any debt obligations that, if restructured, would have a significant impact on the company’s ability to meet other financial obligations.
Definition of "Material Indebtedness" for credit ratings
This definition applies "Material Indebtedness" to credit ratings.
"Material Indebtedness" refers to any debt or obligation that could significantly affect the company’s credit rating, making it material for financial analysis and operations.
Definition of "Material Indebtedness" for insolvency risk
This definition ties "Material Indebtedness" to insolvency risk.
"Material Indebtedness" means any financial obligation that, if not met, could lead to insolvency or a significant deterioration in the company’s financial condition.
Definition of "Material Indebtedness" for debt issuance
This definition connects "Material Indebtedness" to debt issuance.
"Material Indebtedness" refers to any debt issuance that, when taken together with other obligations, constitutes a material portion of the company’s total liabilities.
Definition of "Material Indebtedness" for financial agreements
This definition links "Material Indebtedness" to financial agreements.
"Material Indebtedness" means any financial agreement or contractual obligation that results in the company being required to pay a substantial sum or meet other significant terms.
Definition of "Material Indebtedness" for leverage ratios
This definition applies "Material Indebtedness" to leverage ratios.
"Material Indebtedness" refers to any debt that significantly affects the company’s leverage ratio, making it a material factor in assessing the company’s financial health.
Definition of "Material Indebtedness" for lender relations
This definition ties "Material Indebtedness" to lender relations.
"Material Indebtedness" means any debt that could significantly affect the company’s relationship with lenders, including triggering provisions for accelerated repayment or penalties.
Definition of "Material Indebtedness" for payment obligations
This definition connects "Material Indebtedness" to payment obligations.
"Material Indebtedness" refers to any debt or obligation that requires substantial periodic payments, which could have a material impact on the company’s cash flow and operational budget.
Definition of "Material Indebtedness" for debt instruments
This definition links "Material Indebtedness" to debt instruments.
"Material Indebtedness" means any debt instrument, including loans, bonds, or credit lines, that is considered material to the company’s ability to meet its financial commitments.
Definition of "Material Indebtedness" for insolvency proceedings
This definition applies "Material Indebtedness" to insolvency proceedings.
"Material Indebtedness" refers to any financial obligation that could lead to the commencement of insolvency or bankruptcy proceedings, constituting a material event for the company.
Definition of "Material Indebtedness" for debt-to-capital ratio
This definition ties "Material Indebtedness" to the debt-to-capital ratio.
"Material Indebtedness" means any debt or obligation that affects the company’s debt-to-capital ratio, making it a significant factor in evaluating the company’s capital structure.
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