A security clause of the Request For Quotation proposal for the bond, reads : "Mortgage on land and building of the company comprising three Metro stations of Reach 3-B of North-South corridor namely Jalahalli, Dasarahalli and Nagasandra stations, ensuring a minimum asset cover
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.
Mortgage credit institutions must cover mortgage bonds at all times by an asset cover
(cover principle) and observe strict rules regarding the relationship between their assets and liabilities (congruence principle).
While other factors (such as interest cover, fixed asset cover
and cash flow) may be relevant, the Revenue has principally focused on the debt to equity ratio.
The principal asset cover
covenant is 200% which compares with
The combination of this strong management team, attractive cashflows and good asset cover
make this a very attractive deal for us and one that is well suited to our funding package.
of the Company's Preferred Income Shares and in increasing the asset cover
As a consequence, Fitch IBCA's Long-term rating continues to be constrained by the group's reduced financial flexibility, together with the substantially weaker debt protection and negligible asset cover
offered in respect of present and future unsecured claims.
Recoveries vary for debtors of those other individual ENE affiliates which have been placed under Chapter 11 protection, reflecting the bias towards individual asset cover
analysis within the Plan, though aggregate recoveries on the debts of those entities in Chapter 11 looks to average roughly 20% should the Plan's estimates prove accurate.