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.


Leave a Comment!*

Related Posts

Cross-Border Insolvency

The swift advancements in technology, international trade, and the corporate landscape have led to a surge in the number of multinational entities fostering a seamless connection between countries and businesses…
Read more

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