How to anticipate / handle covenant breaches

Karin Winters & Philippe Fimmers

The “Chapter 11 Nouveau” est arrivé … at least the Belgian version of it! Before getting the protection of the Continuity Act, however, an achievable business plan needs to be in place. Do you have one? How about the reasonability of assumptions and remedial management actions? Have you assessed the quality of future cash flows and headroom to covenants? The ‘wait and see’ approach is not the right one: timely anticipation to future covenant breaches based on concrete facts and figures is required to substantially broaden the options to avoid or handle them.

In this session we will put our financial experience in interaction with our legal expertise and considerations. The new Business Continuity Act and some alternative solutions will be highlighted.