Variance Reporting Clause Samples

Variance Reporting. Subject to the terms of the DIP Orders, commencing on the first full calendar week following the Petition Date and for each calendar week thereafter, on the Friday of such calendar week (the “Subsequent Testing Date”, in each case, testing the trailing four (4) week period ending on the Friday before the applicable testing date), a variance report in a form reasonably satisfactory to the Required Lenders (each, a “Variance Report”) for the applicable Budget Testing Period setting forth, in reasonable detail, any differences between (i) the aggregate cumulative actual “receipts” for such Budget Testing Period on a line by line basis compared to the projected aggregate cumulative “receipts” on a line by line basis set forth in the Approved Budget for such Budget Testing Period, (ii) the aggregate cumulative actual “operating disbursements” on a cumulative basis for such Budget Testing Period on a line by line basis compared to the projected aggregate “operating disbursements:” on a line by line basis set forth in the Approved Budget for such Budget Testing Period and (iii) the aggregate cumulative actual “non-operating disbursements” on a cumulative basis (excluding, for the avoidance of doubt, professional fees) for such Budget Testing Period on a line by line basis compared to the projected aggregate “non-operating disbursements” on a line by line basis (excluding, for the avoidance of doubt, professional fees) set forth in the Approved Budget for such Budget Testing Period (any such difference in clauses (i), (ii) and (iii) above, a “Variance”), together with a statement from the Borrower’s chief financial officer certifying the information contained in such Variance Report. Notwithstanding anything to the contrary herein, to the extent a Subsequent Testing Date is less than four (4) weeks from either the Petition Date or the approval of a Subsequent Budget, the applicable Variances shall be tested using the period of days between such Subsequent Testing Date and the Petition Date or such Subsequent Budget approval date, as applicable. The Variance Report shall also provide a reasonably detailed explanation for any variance that exceed the Permitted Variances. Amounts not used in a Budget Testing Period are not available in a subsequent Budget Testing Period;