The chapter delves into the challenges faced by borrowers in seeking amendments to financial covenants amidst financial constraints, highlighting lenders' support through deferrals and waivers. It also examines the complexities in amending credit agreements, the influence of sponsor backing, and the nuances in covenant testing across different deals.
In the seventh instalment of Reorg's new Covenants Conversations series, hosts Shweta Rao and Peter Washkowitz talk to Goodwin Procter private equity and debt finance partner Kristopher Ring about recent covenant changes in mid-market documentation, strategies employed by sponsors and borrowers to tide over liquidity crises and issues mid-market companies are facing in accessing government relief.