Reach out to your lending institutions and discuss the pro forma effect on debt covenants
and the need to modify existing debt arrangements or proactively address the new covenants needed in a post-Topic 842 world.
Most of the time, these companies are at risk of breaking certain debt covenants
making it difficult for them to issue bonds or borrow from banks, thus prompting them to issue preferred shares instead.
Given a cool start to the summer selling season and his industry checks, the analyst is increasingly concerned that Hudson Technologies could trip its recently amended debt covenants
as early as this quarter.
Under the programme, shares may be bought back in the open market at times and amounts as decided by the company as per its evaluation of market conditions, continued compliance with its debt covenants
and other factors.
Real People, a South African-linked credit-only micro-finance firm, is looking for an investor to help it convince Sh1.27 billion bondholders to wait until 2028 to get their investment back.With accumulated losses of Sh912.6 million and a negative equity of Sh162.5 million by end of September 2018, it has breached debt covenants
and believes getting an investor is the only way out of its financial strain.
The company has already undertaken several liability-management exercises to lower its cost of borrowings, extend debt maturities and improve debt covenants
" Moving forward, the company is taking a pro-active stance in managing its debt and has undertaken several liability management exercises to lower its cost of borrowings, extend debt maturities and improve debt covenants
. During the nine-month period this year, Vista Land registered a 16 percent growth in net income to P8.3 billion from P7.1 billion in the same period last year.
and Renegotiation," Journal of Financial Intermediation, 2:2 (1992), pp.
The operating profile and long concession term allow for relatively high leverage compared with peers and, when coupled with debt covenants
, partially mitigate potential refinance or economic stress risk.
In November, the company, which is one of the firms working on the HS2 London to Birmingham rail line and the revamp of Battersea power station, issued its latest profit warning and said it will breach its debt covenants
. That led to another collapse in the company's share price.
In November, Carillion issued its latest profit warning and said it will breach its debt covenants
, which resulted in another share price collapse.