New Security Doctrine

Definition:

The doctrine whereby an attempt in a Consent Solicitation to revise key payment terms such as maturity, interest rate or type of interest paid (e.g., converting cash interest to Payment-in-Kind) is considered the offer and sale of a “new security” under SEC interpretations, which is then treated as an Exchange Offer for US securities law purposes and requires the issuer to comply with securities laws applicable to new issuances.

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