Since the credit crisis, underwriting standards have improved and these PIK loans are no longer available.

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One recent example is payment-in-kind toggle notes, or PIK toggles.

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But as PIK loans written in 2006 and 2007 begin to term out over the next few years, investors in these instruments may suffer the same fate as investors in negative amortization subprime loans.

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If Spectrum Assets are not acquired due to a failure to obtain required regulatory approvals, Clearwire would, within 30 days following termination of the spectrum purchase agreement, repay the PIK Debenture plus interest at 6% per annum.

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United supporters have protested against the club's owners because of the debt they've added to the team, but repaying the PIK facility will reduce financial pressure on the club, widely considered the world's most valuable sports franchise.

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His high school friend and partner in the lodge, Kirk Lazarus-- a London-based, 18-year veteran of the high-rolling international energy business--has quite a Rolodex himself, and the two share many friends, including Nelson Mandela and former South African foreign minister Pik Botha (a regular commenter in the Molori guest book).

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If Clearwire is unable to repay the PIK Debenture during this 30 day period, it would be entitled to convert the principal amount and accrued interest on the PIK Debenture into a note on terms comparable to the 2015 Senior Secured Notes previously repaid, having a maturity of December 1, 2015.

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