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Working Capital Covenant Sample Clause


Book Publication Date: Nov 2014
Description: Coverage tests are financial covenants that relate to a company's ability to service its debt out of income or cash flow. This clause requires a minimum amount of consolidate working capital and provides definitions for "consolidated working capital", "consolidated current assets", and "consolidated current liabilities".
Type: Contract Clauses
PLI Item #: 129896
Practice Area: Corporate & Securities
Keywords: "working capital"; "consolidated current assets"; "consolidated current liabilities"; "consolidated working capital"; borrower; "consolidated subsidiary"

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