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 ?
However, large sums of money are expected to be received by the SPV before December 31, 2017, as directed in the judgment of the apex court on August 2.
Another benefit worth noting is that the DIFC allows the Intermediate SPV to utilise their existing presence in the DIFC by sharing the same office address so that no additional office is required for the incorporation of the Intermediate SPV, which again minimises the overall cost aspect.
The latter is fully subscribed for by SPV and is subordinated to the Senior IMTN.
The SPV will have global rights for Raricap brand Strategic Rationale
In order to find out critical financial and legal factors for establishing SPV of PPP power projects in Asia, the study is done in a systematic approach involving three phases: (1) literature review and case investigation of PPP power projects in Asia, (2) questionnaire survey to the experts and experienced practitioners in Asia to identify the most important financial and legal factors, and finally (3) analyze data from completed returned questionnaire with simple statistical techniques like mean, standard deviation, ranking and percentage of responses per factor.
The original liquidation preference for the AIA SPV was $16 billion.
The structuring and the valuation of the SPV have not yet been finalised.
International Resource News-9 February 2010-Global Master SPV subscribes for Red Rock 8,691,020 ordinary shares(C)2010 ENPublishing - http://www.
SPV Shopfitting and Building Ltd has been converting ex-Woolies stores throughout the country for the past six months - with the latest two to the north of Aberdeen in Peterhead and Fraserburgh.
The Court has established that the SPV had no economically significant activity of its own and all business decisions of the SPV were in fact taken by BTA Bank, the size of the SPV's capital was very small in comparison with the multi-billion volume of bond issues and the investors understood that the person responsible for the repayment of the funds is BTA Bank and not the SPV.
The government should constitute a Realty SPV immediately for dealing in realty so that developers have the alternative to offload completed or under-construction property to the SPV.
While under the SPV route the burden would not be on the parent companies' balance sheet, the advantage of a consortium approach would be that the companies would enjoy tax benefits extended to exploration activities, industry experts said.