Relaxed credit terms have created opportunities for priming financing outside Chapter 11. In today’s market, drafting holes in sponsor-friendly credit agreements are exploited to avoid the cost and dislocation of a Chapter 11 process. The current trend is an evolution from one type of Liability Management Transaction (LMT), the dropdowns of collateral, toward the other type of LMT, senior new money and non-ratable up tier exchanges. A LMT begins with creditors holding common positions and having common interests in the capital structure identifying each other and forming an ad hoc group.

Energy Transition and need for flexibility. There is no denying the fact that electricity is crucial for the world economy to thrive in this and the coming centuries. The demand for electricity increases not only because the human population increases, but also because the social-economic activities of humans are rapidly shifting from manual processes to automated processes, which are essentially driven by electricity. Therefore, electricity becomes inevitable for the sustainability of modern civilization because it has found its way to the root of many human establishments.

The two main tax equity structures are sale/leasebacks and partnership/flips. The ITC is a one-time credit against income tax that is based on the amount invested in a facility. The ITC is subject to recapture if, within five years after a facility is “placed in service,” the taxpayer sells or otherwise disposes of the project or stops using it in a manner that qualifies for the credit – like taking it out of service or permitting the PPA off taker to operate and maintain the project.