Covenant breach
Posted: 28 Feb 2024, 20:03
Hello Dears,
We have a instance where the client breached the loan covenant as at 31.12.23 (reporting period) but didn't classified it to current. The loan agreement has a curing period of 15 days after reporting period and client could fix/complied with it within 15 days. Am I right that the curing period is the same grace period which must be at least 12 months so that the loan can be classified still non-current as of 31.12.23.
Thanks in advance.
We have a instance where the client breached the loan covenant as at 31.12.23 (reporting period) but didn't classified it to current. The loan agreement has a curing period of 15 days after reporting period and client could fix/complied with it within 15 days. Am I right that the curing period is the same grace period which must be at least 12 months so that the loan can be classified still non-current as of 31.12.23.
Thanks in advance.