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The present shareholders then gain from the separate incorporation of The brand new project into an SPV.
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That's why, When the borrower provides a personal debt default, the financial debt-issuer has the correct to seize the property of your reported SPV. However, they don't have the appropriate to any further assets that are not Element of the SPV, even if the liquidating property in the SPV are certainly not adequate to deal with the worth owed on account of default.