Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 64

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 64
---
 unrealized losses and/or gains on the Collateral at that point are borne by holders of the Warehouse Equity, with the
consequence that we may not receive back all or any of its investment in the CLO Warehouse.

We are subject to risks associated with the bankruptcy or insolvency of an issuer or borrower of a loan that we hold or of an underlying asset held by a CLO in which we invest.

In the event of a bankruptcy or insolvency of
an issuer or borrower of a loan that we hold or of an underlying asset held by a CLO or other vehicle in which we invest, a court or other
governmental entity may determine that our claims or those of the relevant CLO are not valid or not entitled to the treatment we expected
when making our initial investment decision.

| 41 |

Various laws enacted for the protection of debtors
may apply to the underlying assets in our investment portfolio. The information in this and the following paragraph represents a brief
summary of certain points only, is not intended to be an extensive summary of the relevant issues and is applicable with respect to U.S.
issuers and borrowers only. The following is not intended to be a summary of all relevant risks. Similar avoidance provisions to those
described below are sometimes available with respect to non-U.S. issuers or borrowers, and there is no assurance that this will be the
case which may result in a much greater risk of partial or total loss of value in that underlying asset.

If a court in a lawsuit brought by an unpaid creditor
or representative of creditors of an issuer or borrower of underlying assets, such as a trustee in bankruptcy, were to find that such
issuer or borrower did not receive fair consideration or reasonably equivalent value for incurring the indebtedness constituting such
underlying assets and, after giving effect to such indebtedness, the issuer or borrower (1) was insolvent; (2) was engaged in a business
for which the remaining assets of such issuer or borrower constituted unreasonably small capital; or (3) intended to incur, or believed
that it would incur, debts beyond our ability to pay such debts as they mature, such court could decide to invalidate, in whole or in
part, the indebtedness constituting the underlying assets as a fraudulent conveyance, to subordinate such indebtedness to existing or
future creditors of the issuer or borrower or to recover amounts previously paid by the issuer or borrower in satisfaction of such indebtedness.
In addition, in the event of the insolvency of