Definition for : Non-petition

When a Special Purpose Vehicle (also called Special Purpose Company) is resorted to, any party entering into a contractual relationship with the said SPV (E.g. a trustee or other service provider) irrevocably undertakes not to initiate any Bankruptcy proceeding against the SPV. This is an essential step in achieving a Bankruptcy-remoteness status for the SPV.
(See Chapter 46 Leveraged buyouts (LBOs) of the Vernimmen)
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