The company also pointed out that just 4% of its loans are in forbearance and that it encourages borrowers to choose a more affordable, modified repayment plan before resorting to forbearance.
If this were a 'deposit,' borrowers would either get their fees back at the end of the forbearance or the money would be applied to the loan's balance.
In an interview with Credit Union Times just prior to Sallie Mae's forbearance fee policy change, Change.
The material terms of the forbearance are as follows:
75% Notes due 2013, would agree to forbear from exercising their remedies with respect to TRCLP's failure to pay cash interest on these notes during the forbearance period (interest would continue accrue on such notes at the applicable contractual rate but will not be paid in cash and instead would be added to the principal amount of the notes).
It is intended that the forbearance arrangement become effective on March 16, 2009 and would continue in effect through December 31, 2009 unless terminated early in accordance with its terms.
Conditions to the effectiveness of the forbearance arrangement include the following minimum acceptance levels for each series of the Notes: 90% for the 3.
The Company noted that the forbearance agreement will not be binding on non-consenting holders, and non-consenting holders will not be entitled to receive the consent fee.
The extended forbearance agreement also provides that a potential lender to NTC, with whom NTC is in discussions regarding a secured credit facility, must provide its response on or before Oct.
The company and Casey are continuing their efforts to seek new equity and/or debt financing in order to recapitalize the company's and NTC's operations and to satisfy its obligations to WorldCom and First Bank, although no assurances can be given that these efforts will be successful or that the other conditions to WorldCom's and First Bank's continued forbearance will be satisfied.
If the WorldCom forbearance terminates, WorldCom could terminate providing NTC's telecommunications services, in which case NTC would be unable to continue to provide telecommunications services to its customers.
In connection with the extension of the forbearance agreements from WorldCom and First Bank, the company and Casey have established Oct.