Loan Covenants – Loved & Hated in Equal Measure

The relationship between a debtor and a creditor is centered on trust, but governed by a loan agreement, a legally binding document. Beyond assessing a debtor’s credit worthiness, ability to pay and a back-stop from collateral, a creditor must also assess a debtor’s willingness to pay – does the creditor trust the debtor.

0

Leave a Comment!*

Related Posts

The Walking Dead –…

Continuing with our Insolvency Series, in this article, we look at zombie companies – what are they and what options are available to them? Read More
Read more

The Misunderstood Profession of…

As the success of any insolvency process is largely dependent on those that administer it, in this article we discuss and evaluate the role of insolvency practitioners. An insolvency practitioner,…
Read more