Security & Collateral · glossary
A breach the Facility Agreement lists as a default. It lets the Bank cancel the loan and demand it all back at once, but it does not by itself let the Bank enforce its security. The Company's interest cover breach in 2027 was one. Definition: Event of Default · Chapter 8
Explained in Chapter 8, The Breach, the Waiver and the Blocked Account, of Security & Collateral.
Also explained in Debt Capital Markets, Derivatives and Restructuring Plans.
Loan agreements set financial covenants: tests of the borrower's figures, made every quarter. A borrower that fails one commits an Event of Default. The lender may then cancel the loan and demand all of it back at once, which is called acceleration.Read Chapter 8, The Breach, the Waiver and the Blocked Account →
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an event so described in the Facility Agreement;Read the definition in the document →
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