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The covenant that will break in two quarters: who to tell and when

Il covenant che salterà tra due trimestri: chi avvisare e quando · Finance · Beginner

The case

Your internal projections are clear: at this pace, in two quarters the company will breach the debt/EBITDA covenant on its main 4 million loan. The breach would give the bank the right to revoke the facility and demand repayment. The CEO proposes waiting: maybe the quarter surprises, and warning now would alarm the bank about something that might not happen. You know banks hate surprises more than bad news, but you also know a premature alarm can trigger exactly the squeeze you want to avoid. Meanwhile the margin recovery plan exists but will only show effects in three quarters. How do you play the next sixty days?

Le tue proiezioni interne sono chiare: di questo passo, tra due trimestri l'azienda violerà il covenant sul rapporto debito/EBITDA del finanziamento principale da 4 milioni. La violazione darebbe alla banca il diritto di revocare il fido e chiedere il rientro. Il CEO propone di aspettare: magari il trimestre sorprende, e avvisare ora significherebbe allarmare la banca per qualcosa che potrebbe non accadere. Tu sai che le banche odiano le sorprese più delle cattive notizie, ma sai anche che un allarme prematuro può innescare proprio la stretta che vuoi evitare. Nel frattempo il piano di recupero margini esiste ma darà effetti solo tra tre trimestri. Come giochi i prossimi sessanta giorni?

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