Budget Covenant Clause Samples

Budget Covenant. Commencing with the first full calendar week following the Petition Date and for each calendar week thereafter, the Loan Parties shall not permit (a) the actual amount of “Total Operating Disbursements” as set forth in the Approved Budget to exceed one hundred and ten percent (110%) (such percentage, the “Permitted Variance”) the requirements set forth in this Section 6.15, the “Budget Covenant”) of the amount projected in the “Total Operating Disbursements” line item of the Approved Budget for the period from the Petition Date through February 23, 2024, then for the period from the Petition Date through each successive week through March 8, 2024, and then for each rolling four (4)-week period thereafter and (b) the actual amount of total Collections to be less than sixty percent (60%) of the amount projected in the “Total Collections” line item of the Approved Budget for the period from the Petition Date through February 23, 2024, seventy percent (70%) of the amount projected in the “Total Collections” line item of the Approved Budget for the period from the Petition Date through March 1, 2024, and ninety percent (90%) of the amount projected in the “Total Collections” line item of the Approved Budget for the period from the Petition Date through March 8, 2024, and each rolling four (4)-week period thereafter; provided, that in all circumstances, a positive variance in any one measurement period may be carried over for use in subsequent measurement periods (the requirements set forth in this Section 6.15, the “Budget Covenant”).

Budget Covenant. The Debtors shall not permit, as of any Variance Report Date, (x) the actual aggregate operating disbursements (excluding professional fees) or Capital Expenditures of the Loan Parties and their Subsidiaries for any Variance Testing Period to exceed 115% (or, in the case of any Variance Testing Period of less than four weeks, 120%) of the projected aggregate operating disbursements (excluding professional fees) or Capital Expenditures, as applicable, of the Loan Parties and their Subsidiaries for such period set forth in the Approved DIP Budget, or (y) the actual aggregate receipts for the Variance Testing Period to be less than 85% (or, in the case of any Variance Testing Period of less than four weeks, 80%) of the projected aggregate receipts for such period set forth in the Approved DIP Budget.

Budget Covenant. The Debtors shall not permit, as of any Variance Report Date,

Budget Covenant. Borrower covenants and agrees that Borrower shall: (a) generate net cash receipts in an amount equal to at least 85% of the amount set forth in the Budget for the cumulative period commencing on the Effective Date and ending on the last day of each month thereafter; (b) maintain aggregate expenditures no greater than 115% more than the aggregate amount projected by the Budget to be expended during the cumulative period commencing on the Effective Date and ending on the fourth Friday after the Initial Test Date and the last day of each month thereafter; and (c) generate Net Cash Flow in an amount equal to at least 85% of the amount set forth in the Budget for the cumulative period commencing on the Effective Date and ending on the last day of each month thereafter.

Budget Covenant. Permit, as of any Variance Report Date (commencing with the report delivered on June 2, 2023 with regard to the period ending May 27, 2023), either: (1) the Actual Disbursements of the Loan Parties for any Variance Testing Period in the aggregate on a cumulative basis for such Variance Testing Period to exceed 115% of the disbursements (excluding professional fees) for such period set forth in the Approved Budget in the aggregate; and (2) commencing with any Variance Report Date that occurs sixty (60) days after the Petition Date and for each Variance Report Date thereafter (which, for the avoidance of doubt, shall begin with the Variance Report Date on July 21, 2023 with regard to the period ending July 15, 2023), the Actual Cash Receipts for any Variance Testing Period in the aggregate on a cumulative basis for such Variance Testing Period to be less than 75% of the receipts for such period set forth in the Approved Budget in the aggregate.

Budget Covenant. (a) With respect to the Budget, commencing with April 15, 2015 and on every Wednesday thereafter (each such day, a “Budget Testing Date”), for the four-week period ending on a Saturday immediately preceding such Budget Testing Date (or with respect to the Budget Testing Date on each of April 15, 2015, April 22, 2015 and April 29, 2015, for the period from and including the Sunday prior to the Petition Date through the Saturday immediately preceding such Budget Testing Date) (each such four-week or shorter period, the “Budget Testing Period”), the Loan Parties shall not have permitted the actual disbursements during the Budget Testing Period to be more than the Permitted Disbursement Variation of the budgeted amount of “Total Disbursements” in the Budget for such period. (b) On each Budget Testing Date, the Loan Parties shall not have permitted the aggregate amount of the actual receipts during the Budget Testing Period to be less than the Permitted Receipts Variation of the budgeted amount of “Projected Receipts” set forth in the Budget for such period.

Budget Covenant. Each line item in the Approved Budget is subject to a permitted negative variance of (i) 10% per week above the projected aggregate disbursements set forth in the Approved Budget, (ii) 10% per week, on disbursement on a by-line-item basis, and (iii) 10% per four-week period, then ending, on the revenue set forth in the Approved Budget. Any unused amounts in the Approved Budget during any one-week period may be carried forward to future weekly periods and applied to any amount by which that same line-item, and only that same line-item, exceeds its projected use as set forth in the Approved Budget, such that the cumulative-to-date budgeted amount for each line item is available without causing such future weekly periods to exceed the allowable variance. Each line item in the Approved Budget is subject to a maximum amount for each particular week, as specified therein.

Budget Covenant. The Debtors shall not permit, as of any Variance Report Date, (x) the actual aggregate operating disbursements (for the avoidance of doubt, excluding any professional fees) for any Variance Testing Period to exceed 115% of the projected aggregate operating disbursements for such period set forth in the Approved DIP Budget (as in effect at the beginning of such Variance Testing Period), or (y) the actual aggregate receipts for the Variance Testing Period to be less than 85% of the projected aggregate receipts for such period set forth in the Approved DIP Budget (as in effect at the beginning of such Variance Testing Period).

Budget Covenant. Audacy Operations shall cause the Audacy Operating Group to (x) comply with the budget reporting requirements set forth in the DIP Order and deliver all Variance Reports to the Agent concurrently with the delivery thereof to the Prepetition First Lien Advisors and Prepetition Second Lien Advisors (each as defined in the DIP Order) in accordance with the DIP Order and (y) comply with the Approved Budget (subject to Permitted Variances), each in accordance with the terms of the DIP Order.