Finance is the lifeblood of many businesses and credit is operationally critical in every business sector. Whilst no business intends to default on its repayment obligations, all businesses should be aware of the implications and consequences of doing so. However, businesses should also be aware that other breaches, what are often characterised as “technical” breaches, can also have serious consequences and in some cases result in a chain of events that are existential for a business.

Key discussion topics:

• What are Financial Covenants?
• Consequences of Breaching Financial Covenants
• Defences to breach of covenant claims by lenders
• Alternatives for debtors