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Topic: Business
Number of pages / Number of words: 3 / 608
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This would put the bank and Hampton in a new default situation.

Option three would be to extend the original Hampton loan with increased debt covenants along with a built in extension option with rate a bump to 2% per month. Under this scenario, Hampton would be required to push back the $350,000 purchase of additional equipment, and would also have to indefinitely push back the $150,000 dividend...


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Under this scenario, Hampton would be required to push back the $350,000 purchase of additional equipment, and would also have to indefinitely push back the $150,000 dividend. The loan will have a built in extension with a rate bump in the event that Hampton is unable to pay down the loan by the December 1979...


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