Paranoid Panda
New Member
No.
The real thing is that the equity / overcollateralized account can be structured on many different ways (The structuring agent can make it the way he wants)
So the question again is useless in my opinion.
Honestly havent heard of cashflows bypassing OC to equity . Yes indentures do specify that if the OC ratio test and triggers are satisfied cash flows can start being diverted from the OC account but thats generally towards defferred interest payments or principal repayments for senior and mezz notes etc and with a lot of If-Then conditions in the waterfall...Haven't seen that happening in the case of equity ..anyhow the feedback email is here looking forward to sharing my opinion with the team.