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Asset Coverage
(redirected from Asset Cover)

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Asset Coverage
The extent to which a company can maintain operations at its level of debt. One of the most common ways to measure asset coverage is the asset coverage ratio, which divides the value of tangible assets less current liabilities by the company's total debt outstanding. These liabilities may include preferred dividends and rent. See also: Cash flow coverage ratio, Debt service coverage ratio.


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Quoting a source close to the negotiations, Building said the waiver centred around the firm's asset cover covenants, which govern the ratio of debt to net assets.
The waiver is said to be centred around the firm's asset cover covenants, which govern the ratio of debt to net assets, thought to be at 85 per cent.
The ZDP Shares have been trading at below their entitlement to Net Asset Value and the Board believes that such purchases are in the interests of shareholders generally in enhancing the Net Asset Value of the Company's Preferred Income Shares and in increasing the asset cover for the entitlements of remaining ZDP Shareholders.
 
 
 
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