Sentence examples for violating covenants from inspiring English sources

By Mr. Johnstone's calculations, the business will not generate enough cash this year to keep it from violating covenants in its bank loans.

That is an incentive to be tough.Banks have also sought to stop large borrowers, such as private-equity funds, from funnelling money to companies they own that are in danger of violating covenants.

Violating covenants can set in motion events that lead to bankruptcy.

The funds are speculating that by failing to file in time they would violate covenants, thereby requiring repayment of the bonds at full face value.

Among other things, Parent believes that: (i) in light of this downturn, the projections provided to the board are no longer accurate, and (ii) Pep Boys may have experienced a material adverse effect or may have violated covenants contained in the Merger Agreement.

In the fourth quarter of last year, on the verge of violating loan covenants, the company had to renegotiate its debt with Bank of America.

Thus, the Brewers appear to be violating their covenants with the people of Wisconsin and with the players' union, as the commissioner seems to be idly standing by.

They are increasing their bet on a company that last year was in danger of violating loan covenants because of slumping sales.

"If they're not obligated to enforce the covenants," he said, "to a large extent, that's giving the homeowner who wants to violate the covenants the ability to do so with impunity".

Some analysts said the company could violate debt covenants early next year.

If the borrower violates these covenants, the bank can call the debt.