The end of the first quarter of 2015 is approaching, and quarterly debt covenant compliance certificates are coming due. If your business is like many in our area, this thought probably fills you with dread. With so many businesses in Houston tied to the energy industry, the effects of the free fall in oil prices that started last summer will begin to be seen in this quarter’s results. Watch the video below to discover what you should know about breaking debt covenants.
What You Should Know About Breaking Debt Covenants
So what can you do if you’re out of compliance? Even though the situation may look bleak, there are several things a business can, and should, do when faced with broken debt covenants. Check out this video that addresses:
- The purpose of debt covenants
- What happens when you’re out of compliance
- How the bank reacts to your broken debt covenants
- What steps you should take to get back into compliance
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