Covenant Testing Period definition

Covenant Testing Period means a period (a) commencing on the last day of the fiscal quarter of Borrower most recently ended prior to a Covenant Trigger Event for which Borrower is required to deliver to Administrative Agent quarterly or annual financial statements pursuant to Section 5.2 of this Agreement, and (b) continuing through and including the first day after such Covenant Trigger Event that Availability has equaled or exceeded the greater of (i) 10% of the Borrowing Limit, and (ii) $15,000,000 for 60 consecutive calendar days.

Covenant Testing Period means, a period commencing on the date Excess Availability is less than the amount equal to 12.5% of the Maximum Revolver Amount as in effect on such date and ending on the date that Borrowers have maintained Excess Availability of not less than the amount equal to 12.5% of the Maximum Revolver Amount as in effect on the applicable date of determination for 90 consecutive days.

Covenant Testing Period means a period (a) commencing on the last day of the fiscal quarter of Parent most recently ended prior to a Covenant Trigger Event for which Borrowers are required to deliver quarterly or annual financial statements pursuant to Section 5.2 of this Agreement, and (b) continuing through and including (but ending on) the first day, after such Covenant Trigger Event, on which Availability has exceeded 20% of the then effective Borrowing Base for 30 consecutive days.

Examples of Covenant Testing Period in a sentence

• Each Borrower covenants and agrees that, until the termination of all of the Commitments and the payment in full of the Obligations, Borrowers will maintain a Fixed Charge Coverage Ratio, calculated for each 12 month period ending on the first day of any Covenant Testing Period and the last day of each fiscal month occurring until the end of any Covenant Testing Period (including the last day thereof), in each case of at least 1.00 to 1.00.

• At any time during a Covenant Testing Period, Holdings shall not permit the Consolidated Fixed Charge Coverage Ratio, for the Test Period ended immediately prior to the commencement of such Covenant Testing Period and for each Test Period thereafter to be less than 1.00 to 1.00.

• At any time during a Covenant Testing Period, fail to have a Fixed Charge Coverage Ratio, measured on a month-end basis, of at least 0.85 to 1.00 for the 12 month period ending on the last day of each Fiscal Month.

• During a Covenant Testing Period (including the first and last day thereof), have a Fixed Charge Coverage Ratio, measured on a month-end basis for each 12 month period ending on the last day of each fiscal month, of at least 1.00 to 1.00.

• Maintain a Fixed Charge Coverage Ratio, measured for the 12 month period ending on the last day of each fiscal month during a Covenant Testing Period (including the first and last day thereof (if such last day is the last day of a fiscal month)) of at least 1.0 to 1.0.

More Definitions of Covenant Testing Period

Covenant Testing Period means the period (a) commencing on the day that an Event of Default occurs, or Aggregate Availability is less than or equal to the greater of (i) $3,500,000 or (ii) 10% of the then outstanding Revolving Commitments; and (b) continuing until, during each of the preceding 60 consecutive days, no Event of Default has existed and Aggregate Availability has been greater than the greater of (i) $3,500,000 or (ii) 10% of the then outstanding Revolving Commitments.

Covenant Testing Period means the period commencing on any date on which (a) Modified Excess Availability is less than the greater of (1) $5,000,000 and (2) 12.5% of the Line Cap or (b) an Event of Default shall occur, and, in each case, ending upon a Covenant Testing Reversion Date.

Covenant Testing Period means any period (a) commencing on the date that Borrowing Availability shall be less than the greater of (A) $40,000,000 and (B) 10% of the aggregate Revolving Commitments in effect at such time (such trigger, the “Covenant Testing Trigger”); provided that the occurrence of the Covenant Testing Trigger is solely triggered by a decline in the Aggregate Borrowing Base resulting from an updated appraisal or field examination with respect to assets or property comprising any part of the Borrowing Base, the Borrowers shall have one Business Day to increase the Borrowing Availability such that the Covenant Testing Trigger does not apply (during which period the Lenders shall not be obligated to make Loans and Issuing Banks shall not be required to issue, renew or extend any Letters of Credit); and (b) continuing until, during the preceding 30 consecutive days, Borrowing Availability has at all times been greater than the greater of (i) $40,000,000 and (ii) 10% of the aggregate Revolving Commitments in effect at such time.

Covenant Testing Period means a period (a) commencing on the last day of the fiscal quarter of Borrower most recently ended prior to a Covenant Trigger Event for which Borrower is required to deliver to Lender monthly or annual financial statements pursuant to Section 6.1, and (b) continuing through and including the first day after such Covenant Trigger Event that Availability has equaled or exceeded the greater of (i) 20% of the Maximum Line, and (ii) $16,000,000 for 60 consecutive days.

Covenant Testing Period means a period (i) commencing on the last day of the final month of the fiscal quarter most recently ended prior to the occurrence of a Covenant Trigger Event for which the Borrowers were required to deliver to the Agent monthly Financial Statements pursuant to the terms of this Agreement, and (ii) continuing until a period of sixty (60) consecutive days has elapsed from the date of the occurrence of such Covenant Trigger Event during which period at all times Excess Availability has equaled or exceeded the greater of (A) Fifteen Million Dollars ($15,000,000) and (B) twelve and one-half percent (12.5%) of the lesser of (1) the Borrowing Base then in effect and (2) the Aggregate Revolving Credit Commitment then in effect.

Covenant Testing Period means a period (a) commencing on the last day of the fiscal month of Parent most recently ended prior to a Covenant Trigger Event for which Borrowers are required to deliver to Agent monthly financial statements pursuant to Schedule 5.1 to this Agreement, and (b) continuing through and including the first day after such Covenant Trigger Event that Availability has equaled or exceeded the greater of (a) 15% of the Maximum Revolver Amount, and (b) $4,500,000 for 60 consecutive days. 2 Paragraph 7 only needs to be included in a Compliance Certificate delivered at the end of a fiscal quarter or if a Covenant Testing Period is in effect.

Covenant Testing Period means a period (i) commencing on the last day of the Fiscal Quarter of Borrower most recently ended prior to a Covenant Trigger Event and (ii) continuing through and including the first day after such Covenant Trigger Event when no Covenant Trigger Event has occurred for at least thirty (30) consecutive days.