Select Committee on Treasury Written Evidence


Appendix 2

  Areas controlled, subject to case by case agreement on exceptions and limitations, in a covenant lite loan may include the following:

Provision of information

  eg:

    —  Annual audited consolidated accounts

    —  Quarterly consolidated accounts

    —  Notification of default

    —  Notification of material events, publicly announced

    —  Compliance certificates

Positive Covenants

  eg:

    —  Compliance with laws

    —  Environmental compliance

    —  Taxation

    —  Insurance

    —  Pensions

    —  Intellectual Property

    —  Cash Management

Negative Covenants

  eg:

    —  Restrictions on disposals

    —  Restrictions on borrowings

    —  Restrictions on investments

    —  Restrictions on distributions

    —  Restrictions on change of control







 
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