The concept of a “construction basket,” which is generally defined as “cumulative credit” or “available amount,” represents an amount that the borrower can use for investments, limited payments (as explained below), debt advances or other purposes. This is the third category, commonly referred to as the “basket” (and is usually the last authorized member in the corresponding member). In order to take as an example the limitation of financial debt, the group of lenders may decide that a number of exceptions specific to the general prohibition are acceptable, such as in-crement subordinated debts, non-speculative cash transactions, old debts incurred by a company acquired when reduced within three months, and financing in accordance with the group`s activities. Lenders will also allow a basket with a specified amount of money for all financial debts that do not fall into these categories. The size of this basket depends on the size of the business. What is a basket? A “Builder” basket is a basket that, after signing the facility agreement, is traditionally “built” on the basis of the performance of the group of borrowers, either by a retained excess cash margin or by 50% of consolidated net income. In the United States, construction baskets are also referred to as “available amount” or “cumulative credit.” Availability as part of a contractor basket can normally be used for limited payments, investments and payments of subordinated, unsecured or subordinated debt that would otherwise be limited by negative obligations (i.e. negative agreements that limit cash flow from the borrower group through distributions to shareholders, loan investments or junior/second bond repayments, non-guarantees or subordinated debt). It is not uncommon for the borrower group to be sufficiently debt-free to perform a reduced leverage or fixed fee recovery test before amounts from the basket can be used, particularly when the basket is used for dividend distribution and there are sometimes default blocks. On the basis of the basic elements, a “basket” is an agreed exception to a negative credit contract. A general basket is often considered a restriction based on a fixed amount (also called a “hard cap” (z.B. 50,000,000 euros), a percentage of a declared variable (e.g., Total Assets.B, EBITDA, group surplus, equity contribution, withheld cash margin) and/or compliance with certain financial insurance ratios (e.g.
B a basket of “ratios” that generally require a leverage or fixed fee coverage rate).