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b) Non-financial covenants
A number of non-financial covenants have been established
in line with market practice applying to transactions of a
similar nature and size. These covenants involve a series
of restrictions on the grant of secured guarantees to third
parties, on the conduct of acquisitions or equity transactions,
and on amendments to the Company’s by-laws.
Default events
The main default events are as follows:
• default on loan repayment obligations;
• breach of financial covenants;
• breach of some of the non-financial covenants;
• declaration of bankruptcy or subjection of Group companies to
other insolvency proceedings;
• issuance of particularly significant judicial rulings;
• occurrence of events that may adversely and significantly
affect the business, the assets or the financial conditions of
the Group.
Should any default event occur, the lenders are entitled to
demand full or partial repayment of the outstanding amounts
lent under the Credit Agreements, together with interest and
any other amount due under the terms and conditions of these
Agreements. No collateral security is required.
(*) The ratios have been calculated on the basis of the definitions contained in the Credit Agreement 2010 and the Credit Agreement 2011, as well as the figures
relating to the Draka Group for the period 1 January - 31 December 2011.
The above financial ratios both comply with the covenants contained in the Credit Agreement 2010 and in the Credit Agreement
2011.
Actual financial ratios reported at period end are as follows:
31 December 2012
31 December 2011
EBITDA/Net finance costs(*)
6.78
6.40
Net financial position /EBITDA(*)
1.32
1.74
