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Interest coverage test |
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Interest coverage test A debt limitation that prohibits the issuance of additional long-term debt if the issuer's interest coverage would, as a result of the issue, fall below some specified minimum. |
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| The entity fails a debt-equity or interest coverage test. 27, 2006 payment date, failing senior interest coverage tests have diverted principal proceeds to pay the senior secured note principal, but once these tests were cured, principal cashflows have been used to pay interest on the second priority senior notes. The structure also includes more traditional class A and B OC tests as well as an interest coverage test. |
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Interest coverage test
