Entity and Event of default: Difference between pages

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# In a commercial context, the business ''entity'' refers to the whole of the business undertaking, regardless of whether it is financed by equity alone or by a combination of equity and debtThe Entity Value is therefore the total value of the Equity plus the Debt.  In this context the entity is also sometimes known as the Enterprise (and the entity value as the Enterprise Value).
The event of breaching a loan agreement.   
# ''Financial reporting''.  The reporting unit for which financial information is summarised and presented.  For example a company or a group of companies.
 
# ''Tax''.  A business unit which is subject to taxation.  For example a company or a branch of a company established in another country.
 
Each loan agreement will normally define exactly what constitutes an event of default of that agreement.  
 
Events of default will generally include:
*any failure to pay interest or capital on a due date,
*any failure to comply with a covenant, and
*any inability to repeat a representation.




== See also ==
== See also ==
* [[Debt]]
* [[Acceleration]]
* [[Equity]]
* [[Breach of covenant]]
* [[Corporate value]]
* [[Covenant]]
* [[Cross default]]
* [[Default]]
* [[Financial covenant]]
* [[Grace period]]
* [[Loan agreement]]
* [[Material adverse change]]
* [[Representations and warranties]]
* [[Waiver]]
* [[Putting a limit on losses]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Compliance_and_audit]]
[[Category:Corporate_finance]]
[[Category:Identify_and_assess_risks]]

Revision as of 10:30, 9 January 2019

The event of breaching a loan agreement.


Each loan agreement will normally define exactly what constitutes an event of default of that agreement.

Events of default will generally include:

  • any failure to pay interest or capital on a due date,
  • any failure to comply with a covenant, and
  • any inability to repeat a representation.


See also