Seeing the BBEP announcent regarding suspension of distributions has me asking the question: Is there a provision in the EVEP credit agreement that prohibits making distributions when the outstanding debt reaches a certain percentage of the borrowing base, or is it based on coverage ratio instead? Anyone remember seeing this anywhere? I asked the same question on the EVEP board
I have answered this question on the EVEP board. In short, I couldn't find anything in the EVEP docs that describes a 90% covenant. OTOH, it is explicitly stated in the BBEP docs. With their cash-on-hand, EVEP could meet the 90% covenant anyhow.