RE:WHAT HAPPENED HERE ?It means that one of the covenants (approval conditions) which must be met to allow the credit facility to remain in place was not met. Meaning it could result in the loan being called by the lender, that's why it's in current liabilities. The covenants usually are related to the financial ratios used to approve the loan in the first place. Based on the covenant breach, it should be shown in current liabilities as it could be due in full within a year.