Definition of Restrictive covenant - Finance dictionary
Restrictive covenant(See Chapter 35 of the Vernimmen)
Restrictive covenant is a clause that the creditors impose on Shareholders so that the latter cannot increase the creditors' risk. These clauses force management / Shareholders to approach creditors to renegotiate loan agreements if they wish to exceed the limits set in the restrictive covenants. See also rendez-vous clause.
Restrictive covenant(See Chapter 35 of the Vernimmen)
Restrictive covenant is a clause that the creditors impose on Shareholders so that the latter cannot increase the creditors' risk. These clauses force management / Shareholders to approach creditors to renegotiate loan agreements if they wish to exceed the limits set in the restrictive covenants. See also rendez-vous clause.
Restrictive covenant(See Chapter 35 of the Vernimmen)
Restrictive covenant is a clause that the creditors impose on Shareholders so that the latter cannot increase the creditors' risk. These clauses force management / Shareholders to approach creditors to renegotiate loan agreements if they wish to exceed the limits set in the restrictive covenants. See also rendez-vous clause.
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