# Covenant Cure (also referred to in German)

- Canonical URL: https://www.gerhardmerk.de/covenant-cure-also-referred-to-in-german
- Post ID: 590049
- Modified: 2023-07-25T21:01:20+00:00
- Language: en

## Definition

The injection of liquidity into a target company when it needs new funds from the investor as part of a leveraged buyout. - However, because the financing structure in a leveraged buyout is usually structured in such a way that several senior and subordinated creditors are involved, a covenant cure affects many different interests. - Cf. Deutsche Bundesbank Monthly Report of April 2007, p. 16 (model of the financing structure in a leveraged buyout), p. 22 (disadvantages of covenant cures for lenders), ECB Monthly Report of August 2007, p. 102 (covenants customary in leveraged buyouts), ECB Monthly Report of November 2007, p. 26 ff (decline in LBO activity and its reasons; overviews). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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