Build an action plan for checking balance-sheet covenant risk.
Commit to a Covenant Headroom Check A portfolio company is still paying interest, but its revolver covenant tests in 21 days. You need to turn concern into headroom math. Company: ___. Balance-sheet date: ___. Line item or ratio: ___. What changed: ___. What funded the change: ___. Why it matters for cash timing, claim priority, or asset quality: ___. Evidence I still need: ___. Follow-up question I will ask: ___. In 3 days, revisit whether you used the committed read and whether the follow-up question changed your conclusion. Before a lender update, calculate eligible liquidity under the credit agreement, not…
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