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Dictionary by pitch.dog
Debt, credit & capital structure · Core

Covenant breach

Also called: covenant default

ELI5

Failure to comply with a covenant.

Used in conversation

“The draft mentions covenant breach, but the scope and jurisdiction are still unclear.”

Pitch context

You will see “Covenant breach” in financial models, budgets, board packs and investor materials when the discussion reaches debt, credit & capital structure.

Why it matters: In debt, credit & capital structure, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

When the words have to travel

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Sources & evidence · 5

Direct term-level sources and supporting source families.