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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14, 2015 /PRNewswire/ -- Covenant Review, the authority on bond and loan covenants, and its majority shareholder, Leeds Equity Partners, the New York-based private equity fund focused exclusively on investing in the Knowledge Industries, announced today the acquisition of PacerMonitor.
At the meeting, the banks are expected to discuss whether loan covenants were breached because of the accounting errors.
Rivard will provide critical services to the greater New England market, allowing his clients to negotiate the most favorable interest rate, term and loan covenants on both new mortgages and the refinancing of existing loans.
Creditors have agreed to defer $400 million of debt -- due to mature in February next year -- by an additional two years and have also modified CMA CGM's loan covenants.
The net proceeds from the rights issue will be used to partly repay loans from Fokus Bank, the Norwegian unit of Danske Bank A/S (CPH:DANSKE), in order to meet the loan covenants.
Although it is important to consider all costs associated with maintaining loan covenants, for an unaudited business to provide audited financial statements--especially for the first time--is a major undertaking that can be very costly.
According to a recent report by the World Bank, private lenders have granted borrowers more flexibility with loan covenants and demanded fewer third-party guarantees.
AFC was able to secure a lender who understood the issues and worked with the owner on a loan structure that would allow the owner to execute their business plan while still complying with all the loan covenants and not disturb the existing tenancy.
Banks may set loan covenants to help protect your ability to repay the loan.
Those who stumble in the financing endeavor will learn lessons the hard way about loan covenants, workouts, and the sleazy smiles of bankruptcy attorneys.
Loan covenants should allow the company to operate and access its credit facilities, but they sometimes prohibit accessibility of the line.
Worse still, these impairment write-downs, if large enough, could even place the firm in violation of its credit agreements by cutting the book value on which its loan covenants are based.