Conversion Solutions Holdings (fka CSHD)

[thehavenots]

FROM HSM

http://www.hotstockmarket.com/forums/showthread.php?t=41487&page=408



http://www.hotstockmarket.com/forums/showthread.php?t=41487&page=409




Lets disect this bit of confusion...
7. TERMINATION OF AGREEMENT

Subject to the provisions of the following paragraph and the Annex, this Agreement shall terminate and cease to be of any further force or effect on the day and at the time upon which all amounts have been withdrawn from the Fund pursuant to this Agreement.

Agreement ends when the money is used up for its assigned purpose.

Upon the occurrence of any of the following events (each, an "Event of Default") and following a written demand by the Agreement Holder, Conversion Solutions, Inc. shall pay to, or at the direction of, the Agreement Holder all amounts that the Trust is required to pay in such event under the Notes and the Trust Beneficial Interest:
Under these events CSHD must do the following...

(i) Conversion Solutions, Inc.'s failure to make any payment of interest, premium (if applicable), installment payments (if applicable) or Additional Amounts (if and as specified in the Annex) in accordance with this Agreement, if such failure to pay is not corrected within seven (7) Business Days after such payment becomes due and payable; or
Basically if they flat out fail at what they're set out to do

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(ii) Conversion Solutions, Inc.'s failure to make any payment of principal (other than any installment payment) in accordance with this Agreement, if such failure to pay is not corrected within one

(1) Business Day after such payment becomes due and payable; or
Agian, failure to make payments... not gonna hapen
(iii) if Conversion Solutions, Inc. (a) is dissolved (other than pursuant to a consolidation, amalgamation or merger in which the resulting entity assumes its obligations); if CSHD is bought up..oh wouldnt that be beautiful (b) becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay its debts as they become due; Fails at everything.(c) makes a general assignment, arrangement or composition with or for the benefit of its creditors;Negotiates with its creditors (bond owners) for another deal..in THEIR benefit (d) institutes or has instituted against it an administrative or legal proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any supervision, rehabilitation, liquidation, bankruptcy or insolvency law or other similar law affecting creditors' rights, or a petition is presented for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition Bankrupcty..yea right (1) results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its rehabilitation, winding-up or liquidation or Court approval of bankrupcty..(2) is not dismissed, discharged, stayed or restrained in each case within 60 days of the institution or presentation thereof; I dunno what this means (e) has a resolution passed for its rehabilitation, winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger in which the resulting entity assumes the obligations of Conversion Solutions, Inc.); (f) seeks or becomes subject to the appointment of an administrator, supervisor, rehabilitator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets; (g) has a secured party take possession of all or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within 60 days thereafter;all above is about bankrupcty, inability to pay debt, and being taken over (h) causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in clauses (a) to (g) (inclusive); or (i) takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts.some unforseable event, that under court order causes CSHD to go bankrupt and liquidate


pART 2 - Termination agreement

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Notwithstanding anything to the contrary in this Section 7, if an event described in clause (iii) above occurs, this Agreement will automatically terminate and the amount of the Fund will be immediately due and payable by Conversion Solutions, Inc. to the Agreement Holder, or the account specified by the Agreement Holder.Any of the above stated will cause CSHD to repay 100% of debt owed. Just like real estate.

Conversion Solutions, Inc. will promptly notify the Agreement Holder and the Rating Agencies in writing of the occurrence of any of (i) through (iii) above.They will send a nice letter with a pretty stamp saying "we're about to go bankrupt, have a nice day"

I don't see any easy outs for CSHD here... They gotta start making money now, otherwise they loose everything. And I don't think they'd just let the take credit out of hundreds of millions for no reason...