Leverage Ratio Covenant Cure. If the Company fails (or would otherwise fail) to comply with the Leverage Ratio at any time and the Company prior to the relevant reporting date has provided either (i) a Cure Vessel and Security in respect of such Cure Vessel along the principles applicable to the Vessels or (ii) cash collateral deposited on a bank account pledged on first priority and blocked in favour of the Security Agent (on behalf of the Secured Parties) bridging the value shortfall, then (a) if a Cure Vessel is provided, the Leverage Ratio shall be recalculated on the basis that the Market Value of such Cure Vessel shall be deemed to increase the total aggregate Market Value of the Vessels for the relevant period to which the breach relates and (b) if cash collateral is provided and for as long as such cash collateral remains in place, the amount outstanding under the Finance Documents and the Bond Finance Documents shall, for the purpose of the Leverage Ratio only, be deemed to be reduced by the amount of the cash collateral so provided. If, after the Leverage Ratio is recalculated as set out above, the breach has been prevented or cured, the Leverage Ratio shall be deemed to have been satisfied from the last day of the reporting period covered by the financial statements to be delivered on the relevant reporting date. If a Cure Vessel or cash collateral has been provided in accordance with this Clause 20.3, the security arrangement or relevant cash deposit amount shall be released, or, as the case may be in respect of the cash collateral, partly-released, by the Security Agent at the request of the Company, if the Company to the satisfaction of the Agent has demonstrated that following such release or part-release, it will be in compliance with the maximum Leverage Ratio covenant.
