Loan Covenant


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Loan Covenant

A provision in a loan agreement binding the borrower or lender. A loan covenant states what actions the borrower and the lender may or may not take in certain situations. Covenants exist to reduce the risk to all parties to a loan.
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The loan covenant will next be tested on 20 December 2012.
Lloyds, Barclays and Royal Bank of Scotland have all agreed to waive a loan covenant test due at the end of the May and to provide cash until the end of August while a long-term recovery plan is put in place.
The Bank of Scotland will also waive the loan covenant it was set to breach at the end of January.
5p to 90p as traders responded to rumours that the publisher is making progress with lenders regarding loan covenant headroom.
5 times -- typically debt-to-EBITDA -- and that its loan covenant is at 5 times.
Mark Rusch, PME's CFO and partner, also provides the bank with detailed aged payables and receivables; inventory totals; monthly loan covenant calculations, which include debt-to-tangible net worth and current ratio calculations; collateral reports, with a breakdown of payables and receivables used in the calculations; and quarterly cash flow coverage.
In many cases you could argue that loan covenant violations during the initial quarters after a transaction closing are as much the fault of the lending institution who designed the structure as the borrower that accepted the deal.
Two key items can help to distinguish future bankrupts from healthy businesses: 1) trends and interactions among the three cash flows and 2) stress events such as loan covenant violations and loan defaults.
The Company also announced that it had been advised by certain of its banks that they had approved the waivers that had been requested for certain technical loan covenant defaults as of December 31, 2008.
M2 EQUITYBITES-June 29, 2016-Endomines announces continued approval on loan covenant breaches
NORDIC BUSINESS REPORT-June 29, 2016-Endomines announces continued approval on loan covenant breaches
Journal Register's vice president of finance, Gary Struening, did not return a phone message seeking comment on the loan covenant and SEC filings.