When an entity makes a loan, there are loan covenants that the borrower must withstand. These covenants are designed to ensure that the borrower will withstand his long-term commitments to the lending party. Eitan Eldar explains that the goal in these covenants is to maintain a healthy financial behavior, as reflected in the financial reports. The … Read more What Happens in Case of Failture to Fulfill Loan Covenants?
When a businessman wants to become the controlling shareholder of a public company to acquire 51 percent control of it, he usually asks for a loan from the bank. Eitan Eldar says that the amount of the loan depends on the equity of the purchaser. In this situation, the bank would like covenants. These covenants … Read more What Covenants the Bank Requires in a Loan?
In most of the cases, tender offers apply under two situations, as describes businessman Eitan Eldar. What are these two situations? Interest in turning the company into private – Eitan Eldar tells that here, the controlling shareholder of a company removes it from the public market. He submits a tender offer which is higher than its … Read more Eitan Eldar: When Does Tender Offer Apply?