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Problem 3 ABE South Dakota, LLC , a Delaware limited liability company ( Borrower ) , was in some financial difficulty and was
Problem ABE South Dakota, LLC a Delaware limited liability company Borrower was in some financial difficulty and was in violation of a working capital covenant in its debt agreement with a AgCountry Farm Credit Services, PCA, a federal production credit association organized under the Farm Credit Act of as amended Lender They worked out an agreement that had these statements: Recitals Under Section of the Master Agreement Borrower is required to maintain working capital of at least $ as of the last day of each month through August Borrower's working capital as of the month ending September was or is anticipated to be less than the required amount, and Borrower has requested Lender's waiver of any Default or Event of Default which has or may arise as a result of such noncompliance. Now therefore, Limited Waiver of Working Capital Covenant. Lender hereby waives the requirements of Section of the Master Agreement solely for the period ending on September and further waives any Default or Event of Default that has arisen or would otherwise result solely from Borrower's failure to satisfy the Working Capital covenant for such period. The Working Capital covenant for all future periods is not waived by this Agreement and remains in full force and effect. Here is a balance sheet in millions. tableCash$Accounts Payable,$
Problem
ABE South Dakota, LLC a Delaware limited liability company Borrower was in some financial difficulty and was in violation of a working capital covenant in its debt agreement with a AgCountry Farm Credit Services, PCA, a federal production credit association organized under the Farm Credit Act of as amended Lender
They worked out an agreement that had these statements:
Recitals
Under Section of the Master Agreement Borrower is required to maintain working capital of at least $ as of the last day of each month through August Borrower's working capital as of the month ending September was or is anticipated to be less than the required amount, and Borrower has requested Lender's waiver of any Default or Event of Default which has or may arise as a result of such noncompliance.
Now therefore,
Limited Waiver of Working Capital Covenant. Lender hereby waives the requirements of Section of the Master Agreement solely for the period ending on September and further waives any Default or Event of Default that has arisen or would otherwise result solely from Borrower's failure to satisfy the Working Capital covenant for such period. The Working Capital covenant for all future periods is not waived by this Agreement and remains in full force and effect.
Here is a balance sheet in millions.
tableCash$Accounts Payable,$
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