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"“Covenant Trigger Date” means any date Borrower fails to maintain Liquidity in an amount at least equal to Minimum Liquidity."
"“Minimum Liquidity” means, as of any date of determination, the greater of (a) 20% of the Maximum Revolver Amount and (b) $10,000,000."
The company must have $10M on the balance sheet and/or 20% of their drawdown in order for those covenants to be relevant.
I mistyped. If they have less than $10M or 20% of the drawdown they will violate the minimum liquidity requirements which would then make the covenants relevant. Sorry for the typo.
Right now we just don't know what their cash position is but by no means does their negative GM's mean they have triggered their covenants.
sure we do, they said it in the CC...
going forwards we don't know it... however chances are good this loan line been called already.