With the continuing spread of the Coronavirus Disease 2019 (“COVID-19” or “coronavirus”), hospitality service providers are facing a number of issues that have already exacted a heavy financial toll. With consumers staying home and employers limiting travel, there is currently significant pressure on revenues and operating margins. Regardless of the ultimate health impact of this crisis, there is already a significant economic crisis and it may get worse before it gets better.
Financial Covenant Defaults
Loan documents typically contain various financial covenants – including minimum EBITDA, Net Income and Fixed Charge Coverage – all of which are likely to be
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