Allowed Interest Expense

Example Definitions of "Allowed Interest Expense"
Allowed Interest Expense. The actual amount of interest incurred by Owner on the VLT Facility, provided however that: (a) in the event of a Leveraged Recapitalization, the parties shall agree on what the appropriate amount of interest to be charged will be based on what it would have been absent the Leveraged Recapitalization; (b) the calculation of allowed interest assumes a capital structure with no less than thirty percent (30%) equity invested in the VLT Facility and to the extent that less equity has been invested,... interest that would not have been incurred if 30% equity had been invested shall be disallowed; and (c) interest in excess of interest that would have been incurred under the terms of a more favorable third-party financing arranged by Operator and rejected by Owner shall be disallowed. In no event shall any interest be paid to Owner or Operator or an Affiliate of either unless on terms approved by Owner and Operator. View More
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