Financial debt: allottee advances and non traditional funding can qualify when they have the commercial effect of borrowing. Financial debt under Section 5(8) is any debt disbursed against the time value of money, including loans, market instruments, finance leases, discounted ... Summary
Financial debt: allottee advances and non traditional funding can qualify when they have the commercial effect of borrowing.
Financial debt under Section 5(8) is any debt disbursed against the time value of money, including loans, market instruments, finance leases, discounted receivables, derivatives, counter indemnities and guarantees. Clause (f) captures amounts raised under other transactions that have the commercial effect of a borrowing; advance payments by allottees in real estate projects are expressly treated as having that commercial effect. The definition is illustrative and expansive, and interest is included only if payable, so interest free advances may still qualify as financial debt.
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