Regardless if the refunding is a legal defeasance
or in-substance defeasance, the amount of unamortized prepaid insurance associated with the debt being extinguished should be included in the net carrying amount of the extinguished debt, which is compared to the reacquisition price to determine the gain or loss on the refunding that is reported in the accrual-basis financial statements.
The supplemental indenture eliminated substantially all of the restrictive covenants, certain affirmative covenants, certain events of default and certain conditions to legal defeasance
or covenant defeasance contained in the indenture governing the Notes.
In that case, the government ceases to report trust assets and related debt on its statement of net positon, just as though the debt had been repaid (legal defeasance
The proposed amendments eliminate substantially all of the restrictive covenants, certain affirmative covenants, certain events of default, certain conditions to legal defeasance
or covenant defeasance and substantially all of the restrictions on the ability of Cricket or Leap to merge, consolidate or sell all or substantially all of their properties or assets contained in the indenture and the Notes.
In conjunction, the company has deposited USD955.46m with The Bank of New York Mellon Trust Company NA as trustee under the respective indentures for the notes, to effect a legal defeasance
of the notes.