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 ?
LSE: NESF) has signed six share purchase agreements for six separate projects, with three unrelated counterparties, to acquire the special purpose vehicles owning Rampisham, Aller Court, Hill, Forest Farm, Wasing and Flixborough solar plants, the company said.
Its wide product range consists of luxury SUVs and sedans, special purpose vehicles, cast-in-transit vans and executive limousines.
Global Banking News-August 28, 2015--Central Bank to tighten rules on special purpose vehicles
Contract notice: Supply of special purpose vehicles for the emergency needs of the military police including mobile monitoring center - 2 copies.
Foton), China, which manufactures vehicles in partnership with Daimler AG, will see it offer trucks, as well as special purpose vehicles.
Kuwait-based Global Investment House's shareholders have approved a final plan to create new special purpose vehicles that will carry the company's debt as part of its $1.
Tractors, small buses, buses and special purpose vehicles constituted 4.
Rick Watson, managing director of the ESF commented: "The challenge for the securitisation and structured products industry is that, unlike traditional corporate or governmental borrowers, almost all securitisation and structured products are issued through 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.
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.
AM General is a world-leader in the design, engineering, production and technical and parts support of military and special purpose vehicles.

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