My experience with these sorts of finance companies with...

My experience with these sorts of finance companies with leveraged bank debt warehouses and balance sheet facilities, is that a covenant breach usually doesn't trigger immediate repayment because their assets are long term receivables. What tends to happen is that originations stop and all cash is directed to debt repayment, which is pretty much what happened here. The banks were happy to sit there on that basis for 18 mths, so I suspect that the decision to sell the company was a Board decision , not a creditor one.

Anyway. if the Board had any discretion at all, I would have preferred to wait for the cashflows rather than sell them for a discount.