Special Purpose Vehicle


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Special Purpose Vehicle

A subsidiary of a company that attempts to isolate risk from the parent company by maintaining its assets and liabilities on a completely separate balance sheet. It can be used as a counterparty in swap transactions, or the parent company can finance a project through an SPV that would put the parent company in danger of bankruptcy if the project does not perform well. During the Enron scandal, SPVs developed notoriety because Enron hid much of its debt in SPVs.
References in periodicals archive ?
Regulators are taking a "consumer beware" approach to the special purpose vehicles, said McLaren, letting investors decide what will be the catastrophic events that would demean quality in terms of their lending to the special purpose vehicles.
selected special purpose vehicles to implement projects effectively; (iii) based on the reviews of related institutions and arrangements, help draft sample contracts, institutional governance structure and public-private partnerships for skills training institutions and special purpose vehicle to implement OSDP effectively; and (v) any other related tasks to complete this task as part of the OSDP design work.
In the special purpose vehicle, Saudi Tabreed, which is owned by Acwa Power and the UAE s National Central Cooling Company, owns a 60% stake, while the rest of 40% is hold by Jabal Omar.
The Irish central bank has announced a plan to tighten rules on special purpose vehicles (SPVs).
In "Best Practices for De-Constructing & Re-Characterizing SPV's in Bankruptcy", ExecSense examines strategies for utilizing special purpose vehicles, whereby a subsidiary company is created with an asset/liability structure and legal status that makes its obligations secure even if the parent company goes bankrupt.
Contract notice: Supply of special purpose vehicles for the emergency needs of the military police including mobile monitoring center - 2 copies.
Minibuses, buses, trucks and special purpose vehicles constituted 6.
Tractors, small buses, buses and special purpose vehicles constituted 4.
AIG said that the move to place its holdings in American International Assurance Company Limited and American Life Insurance Company in special purpose vehicles will position the units for initial public offerings or third party sales.

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