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Deficiency Agreement

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Deficiency Agreement
An agreement that calls on the sponsor or another party to provide the shortfall when cash flow, working capital, or revenues are below agreed levels or are insufficient to meet debt service.


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By submitting a binding proposal, bidders are offering to enter into a long-term throughput and deficiency agreement for pipeline capacity.
By submitting a binding proposal, bidders are offering to enter into a long-term throughput and deficiency agreement for pipeline capacity.
In addition, Safeway has a first loss deficiency agreement with Future Beef's principal lender which provides that under certain circumstances and in the event of liquidation, Safeway will pay the lender up to $40 million if proceeds from the sale of collateral do not fully repay the amount owed by Future Beef to the lender.
 
 
 
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