Are these terms been meet, Where is the monthly updates? Bankruptcy looks to be on the cards now.
Terms Common to All WHSP Financing Facilities
• Early repayment is permitted (the New Term Loan Facility cannot be repaid before the
other facilities), subject to payments of respective Minimum Earns in full
•
Facilities are secured by all assets of EOS (save for those of certain foreign subsidiaries)
• There are warranties and representations and general positive and negative undertakings
which are customary for a facility of this nature
• The events of default and review included in the agreement are typical for facilities of this
nature, including termination or default under material agreements
• Under an agreement with EOS’ bond facility provider, EFA, the Existing and New Working
Capital facilities rank in priority to the bond facilities provided by EFA.
Financial Covenants
• The following financial covenants apply:
o Asset Coverage Ratio
▪ Defined, in general terms, as the ratio of:
(a) net tangible assets excluding borrowings, relative to
(b) the borrowings of EOS plus the face value of bonds issued, less
cash backing provided in relation to the bond facilities
▪ Must be more than 1.6 : 1
▪ Tested monthly until 31 December 2023 then quarterly
o Cashflow Ratios:
▪ The cash inflows ratio
• Defined as the EOS group's actual cash inflows (over a 3 month
period), relative to the Company's cash inflow forecast (over that 3
month period))
• Must be more than 0.9 : 1
• Tested monthly until 31 December 2023;
▪ The cash outflows ratio
• Defined as the EOS group’s actual cash outflows (over a 3 month
period), relative to the Company’s cash outflow forecast (over that
3 month period))
• Must be less than 1.1 : 1
• Tested monthly until 31 December 2023;
o The Interest Coverage Ratio
▪ Applied on and from 31 December 2023 and tested quarterly, under the
New Term Loan Facility
▪ Defined as EOS group’s Net Cash Flow from Operations (adjusted for
interest payments) relative to interest expense
▪ Must be more than 2.0 : 1
EOS_New_Financing_Facilities_and_Strategic_Growth_Options.pdf
(20min delay)