Equity Cure law

Addi­tio­nal capi­tal brought in by the share­hol­ders of the borrower capi­tal (e.g. in the form of a capi­tal increase, a payment into the capi­tal reserve or from share­hol­der loans) may not be used under certain circum­s­tances. Requi­re­ments for the calcu­la­tion of and compli­ance with finan­cial covenants be included. The charm of an Equity Cure lies espe­ci­ally in this, that by a payment of the share­hol­der to the borrower the viola­tion of the finan­cial covenants can be avoided retro­s­pec­tively, without the credi­tor has any rights and without the banks having any Charge fees for coven­ant breakage.