The strongest solvency proxy is the 10-year credit default swap (CDS) spread which is significant across the categories and sub-categories for investment and payment covenants, weakly significant for the subordinated debt sub-category of the subsequent financing covenant, but strongly significant for the control poison put sub-category of event covenants.
Thus our framework reliably provides theoretical insight and concrete quantitative measurements consistent with extant empirical research such as the shapes of yield spread curves under various firm's financial statuses, and the impact of payment blockage covenants on newly-issued and other outstanding bonds.
The Star Tribune is one of several newspaper companies that, despite multiple rounds of job cuts, are struggling to meet payments or covenants on debt.
Although the church has never made any demand for payment, would such a covenant be enforceable?... Coleman Hoite, Bronx, N.Y.
Mecom's debt restructuring deal will allow the company to further defer its banking covenant test payment to 31 May.
Those signs are still there; in his excellent report on the markets "The Bubble-Taper Tightrope", Jim Reid of Deutsche Bank writes that2013 has been a record for PIK (payment-in-kind) and covenant lite issuance on both sides of the Atlantic.
Policy holders were to have the option of taking insurance from the new company or proving their claims for breach of their contracts, provision for payment being made by covenants of the new company and the retained assets of the old.
Often an award of damages did not fully protect the plaintiff (e.g., if the defendant intended to continue a trespass or a breach of covenant despite the payment of damages).
Covenant Eyes offers three payment options.
Under the lax terms of many buyout loans (deemed "covenant lite"), borrowers could delay payments, say, by issuing i.o.u.'s in lieu of payment or adding the interest to the loan balance rather than paying it.
Most of the eight remaining mega-deals have weak covenants and "payment-in-kind" arrangements that allow them to defer cash interest payments, in one case for up to one-fifth of the total.
