the Borrower should approach Bank to accept the breach of covenants and other stipulations from credit agreement (financial covenant etc.) and to continue in financing relationship under normal conditions. This is prerequisite not to face an Event of default and thus triggering Cross-default under other credit contracts. In case of syndicated deals, participating banks are […]

big ticket loan that is provided by a number of Banks which share the revenues from the deal pro rata as well as collateral provided by the Borrower. The mutual cooperation between the participating banks is concluded in line with Inter-creditory agreement, while the Borrower is represented by the Agent, which acts as Principal Bank […]

in the analogy to the DSCR this is equivalent of above mentioned ratio just with minor difference with respect to measuring the annual installments of interests compared with EBIT (Earnings before Interests and Taxes). This ratio may be used in cases of Working capital financing (WCF), whereas no regular principal installments were scheduled as the […]

in analogy to EoD, this is adverse situation when the Borrower is breaching more than one finance contract, as X-D was applied regardless which contract among them triggered EoD situation. This clause represents standard for more structured financing or “big tickets” deals and even including ISDA related contracts, whereas such event of Cross-default requires coordinating […]

adverse situation under financing/other contract whereas client is in material breach as (i) conditions and stipulations of the contract were not respected or (ii) financial covenant was breached or (iii) the Borrower did not repay the scheduled installment. Such adverse situation would represent huge reputation damage for the Borrower, so that it may finds himself […]

a confirmation signed by the Borrower and delivered to Creditors on fulfilling all conditions and covenants and thus not being in the Default (EoD). This may be required each year as of date of certain anniversary (most likely connected with the date of loan documentation signature). Compliance certificate is considered as important part of loan […]

these are the conditions that Borrower is obliged to deliver within certain period after drawing the credit facility; this means that Bank feels comfort in receiving some minor collateral not necessarily prior the utilization of loans (for instance pledge of insurance policy or Notary deed for stocks pledge) as this form of security is also […]

the set of various conditions that Borrower must fulfill in order to be able to utilize the lending products under loan contract. This typically includes extract from commercial register, corporate approvals, Signatures specimen, KYC underlying documents and naturally execution of security documents (mortgage of Property, pledge of receivables)