Optical Cable Corp.'s Bank May Gain Leverage After OCC Missed 2 Bank Covenants' Requirements

OCC missed the previously contracted requirements of two bank covenants, one on April 30, 2019 (waived) and another on July 31, 2019 (suspended).

Barring a dramatic development, I expect OCC to violate two bank covenants on October 31, 2019 (expected to be waived and/or suspended in exchange for consideration).

I expect OCC's bank to encourage OCC to take bank-friendly actions.

I believe probability of a sale of OCC to an acquirer has increased.