Common use of Breach of Financial Covenants Clause in Contracts

Breach of Financial Covenants. The Issuer fails to fulfil any requirement of paragraph (d) (Financial covenants) of Clause 13.5 (Preservation of equity and financial covenants) provided that a breach of the minimum Interest Coverage Ratio set out therein shall not constitute an Event of Default under this Bond Agreement if: (i) in respect of any single Quarter Date, the Issuer at the subsequent Reporting Date, provides documentation to the Bond Trustee evidencing that (at the Quarter Date to which such subsequent Reporting Date relates), the Liquidity of the Issuer (on a consolidated basis) is no less than the higher of (a) USD 40,000,000, and (b) 3% of its Net Interest-Bearing Debt; or (ii) in respect of any two or more consecutive Quarter Dates, the Issuer at the Reporting Date of the second of those two Quarter Dates, provides documentation to the Bond Trustee evidencing that, the Liquidity of the Issuer (on a consolidated basis) is no less than the higher of (a) USD 50,000,000, and