Monitoring of borrowers and loan covenants


In the challenging times of financial turbulence, credit availability and access to funding remain the utmost business priorities. Business stabilisation programmes and resumption of growth are unthinkable without the continuing good relationships with the banks. In the recent past, some businesses cushioned the worsening of credit conditions by raising share capital via the equity calls; many others fared worse. As a result, debt resturcturings, private as well as public, are now commonplace in many countries worldwide.

We offer the service of Monitoring the Loan Covenants for the banks and companies both in the ordinary course of business and operating under the debt restructuring clauses. Even in the best of times, the bank-borrower relationships required a substantial degree of commitment from the top managers of the borrower and credit executives of the banks. In today’s demanding conditions, an extra layer of trust, competence and comfort added via the monitoring by an independent trustworthy party provides the best possible platform for continuation of the credit support. Moreover, Monitoring Accountant – the role we are skilled at performing – is ideally positioned to facilitate the attainment of further credit waivers in the course of overseeing the covenant performance by the borrowers.

For the banks, Baker Tilly will examine and report every substantial aspect of the covenant performance by the borrowers including the verification of management accounts if required. For the companies, our Covenant Performance Reports, Liquidity Reviews, debt waivers and other deliverables will help sustain the dependable dialog with the banks and achieve acceptable terms of service for the existing debt.

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