at what level can we expect the cap raise?, page-110

Pete

Bankers can have any number of covenants.

Some may be interest cover , debt to ebitda , total debt service cover, minimum shareholders funds, monthly reporting etc the list can be exhaustive and often is overkill. not many companies usually publish these.

Bankers are now not only concerned with getting interest, they also want to know that their principal will be repaid in a timely manner, and is adequately protected with shareholders funds at risk before theirs.

In short , if the bank wants the client to get more capital to protect the banks position , they do not care what price it is raised at, how much existing shareholders are diluted as long as there is adequate margin to protect their exposure. Brutal but true.

Baraka