"When the river makes noise, it carries stones": The role offinancial covenants in financing transactions

Authors

  • Thomas Thorndike Universidad de Lima, Perú

DOI:

https://doi.org/10.26439/advocatus2025.n045.8450

Keywords:

Financings, financial covenants, ratios, agency costs, EBITDA and monitoring mechanisms

Abstract

Through this paper, the author reviews the motivation for the inclusion of this type of clauses in financing agreements, what are financial covenants, some types or categories of the same, key concepts for their use and certain relevant aspects from a practical standpoint when using
and negotiating them.

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Author Biography

  • Thomas Thorndike , Universidad de Lima, Perú

    Abogado por la Universidad de Lima.
    Master en Derecho (LLM) por Columbia University. Profesor de Garantías e Instrumentos Corporativos en la Universidad del Pacífico.

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Published

2025-12-04

Issue

No. 045 (2025)

Section

Especial

License

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

"When the river makes noise, it carries stones": The role offinancial covenants in financing transactions. (2025). Advocatus, 045, 159-172. https://doi.org/10.26439/advocatus2025.n045.8450