Equity Cure Contribution Clause Samples
An Equity Cure Contribution clause allows a borrower to remedy a financial covenant breach by injecting new equity into the company. Typically, if the borrower fails to meet certain financial ratios, such as debt service coverage or leverage ratios, the clause permits the shareholders or sponsors to contribute additional capital within a specified period to restore compliance. This mechanism provides flexibility for borrowers to avoid default and gives lenders assurance that financial covenants can be maintained, ultimately reducing the risk of technical default due to temporary financial setbacks.
Equity Cure Contribution. The Borrower shall promptly inform the COFACE Agent when an Equity Cure Contribution is to be made (including the details of any Equity Issuance or Subordinated Indebtedness being applied for such purpose).
Equity Cure Contribution. The Borrower shall promptly inform the BPIFAE Agent when an Equity Cure Contribution is to be made (including the details of any Equity Issuance or Subordinated Indebtedness being applied for such purpose).
Equity Cure Contribution. Notwithstanding anything to the contrary contained in Section 8.01, for purposes of determining whether an Event of Default has occurred under the financial covenant set forth in Section 7.15, any cash equity contribution (in consideration of common equity or preferred equity (other than Disqualified Capital Stock)) made to the Borrower on or prior to the day that is 15 Business days after the day on which financial statements are required to be delivered for that fiscal quarter (the “Cure Expiration Date”) will, at the request (the “Cure Notice”) of the Borrower given on or prior to the date, ten (10) Business Days following the date on which such financial statements are required to be delivered, be included in the calculation of Consolidated EBITDA solely for the purposes of determining compliance with the financial covenant at the end of such fiscal quarter and any subsequent period that includes such fiscal quarter (any such equity contribution, an “Equity Cure Contribution”); provided that (a) the Borrower shall not be permitted to so request that an Equity Cure Contribution be included in the calculation of Consolidated EBITDA with respect to any fiscal quarter unless, after giving effect to such