Pj568

A Short Update on My Four Short Ideas

Why all the psycho babble about covenants and default semantics.

Bottom line, if you breech a covenant or miss a payment there is typically a cure period before a formal default can be declared. You can sometimes obtain waivers to certain events but if in breech outside of the cure period and in need of a waiver you're at the lenders mercy as to whether its granted or a formal default is declared that allows to proceed with their remedies available under the loan agreement. At this point the lender is attempting to maximize the amount of their recovery, whatever that direction is.