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Nonconsolidation Opinion means the opinion letter, dated the Closing Date, delivered by Borrower's counsel to Lender and addressing issues relating to substantive consolidation in bankruptcy.
: not joined together into a unified whole : not consolidated. nonconsolidated investments/debt/revenue.
An opinion letter often furnished as a condition precedent to the closing of a securitization transaction.
It's an opinion that provides that if any equity owner holding more than 49 percent of the ownership becomes insolvent, the assets and liabilities of the entity wouldn't be consolidated with those of the equity owners.
Substantive consolidation is an equitable remedy pursuant to which a bankruptcy court may order that the assets and liabilities (for ease of reference, the "estates") of separate entities be treated as if they belonged to a single, combined entity.
Insolvency Opinion means, that certain bankruptcy non-consolidation opinion letter delivered by counsel for Borrower in connection with the Loan and approved by Lender or the Rating Agencies, as the case may be.
Substantive consolidation is an equitable remedy pursuant to which a bankruptcy court disregards the separate legal existence of a debtor, and pools the assets and liabilities of the debtor with one or more of its affiliates, in order to make distributions to creditors under a plan of reorganization or liquidation.