Covenant Waiver Agreement between DriveTime Automotive Group, Inc. and SunAmerica Life Insurance Company et al. (November 6, 2002)

Contract Categories: Business Finance › Waiver Agreements
Summary

DriveTime Automotive Group, Inc. requests that SunAmerica Life Insurance Company and other lenders waive an event of default under their Amended and Restated Senior Secured Loan Agreement. The default was triggered by a breach of the Debt to Tangible Net Worth covenant in a related trust, which was due to a documentation error. The insurer, XL Capital, has acknowledged the error and agreed to waive the covenant until it can be corrected. The lenders agree to waive the resulting event of default under their agreement.

Read More Arrow
EX-10.6 7 ex106txt.txt COVENANT WAIVER - SUN AMERICA November 6, 2002 Mr. John Lapham SunAmerica 1 SunAmerica Center Los Angeles, CA 90067-6022 RE: Ugly Duckling Corporation Amended and Restated Senior Secured Loan Agreement Dear Sir: In the quarter and month ending September 2002 and the month ending October 2002 we breached the Debt to Tangible Net Worth covenant of the Duck Auto Owner Trust 2002-B, resulting in an event of default under such trust. In turn, this default caused an event of default under the above referenced agreement under Article VIII Events of Default Section 1(j). The breach of the covenant in the Duck Auto Owner Trust 2002-B was a result of an error in the determination of the covenant test in the drafting of the related deal documentation. The insurer, XL Capital, has agreed the covenant test was set in error and has agreed to waive the covenant until the test can be amended in the related deal documentation. With this letter DriveTime Automotive Group, Inc. requests the lenders under this agreement waive the event of default under their agreement triggered by the breaches in the Duck Auto Owner Trust 2002-B Debt to Tangible Net Worth covenant. If you need any additional information to evaluate this request, please contact me at ###-###-####. Your prompt attention to this matter will be appreciated. Sincerely, Bob Fulton Vice President - Treasurer DriveTime Automotive Group, Inc. cc: Jon D. Ehlinger, Esq. The undersigned hereby waive the event of default requested: KZH Soleil - 2 LLC By: _________________________ Name: _________________________ Title: _________________________ Galaxy CLO 1999-1, Ltd. By: SAI Investment Advisors, Inc. its Collateral Manager By: _________________________ Name: _________________________ Title: _________________________ Sun America Life Insurance Company By: _________________________ Name: _________________________ Title: _________________________