Earnings Release is Out!! This is the update on the covenant breaches just press released..
Update on Liquidity, Outlook and Potential Covenant Beaches
Further to our communication on Feb 25, 2022, Management reports that the actual fourth quarter 2021 results have caused the Company to be in breach of its financial maintenance covenants under its existing secured credit facility (the “Facility”) with its senior lender (the “Lender”). The Company continues to work constructively with the Lender to obtain a waiver and amendment agreement, waiving these covenant breaches and providing for an amendment to such near-term covenants, however, there can be no guarantee that a waiver and amendment will be obtained. In the meantime, the Company continues to operate under the terms of the Facility and will provide an update to the market as more details become available.
Doesn't sound horrible to me, also isn't BMO also a client of bullfrog power, purchasing some renewable energy to meet their ESG goals so seems like there's a connection there where they wouldn't be harsh on the temporary covenant breaches, perhaps even waiving it completely until EBITDA margins can return to normal levels. Also back in March 2021, Spark had issues with their BMO credit facility and came through with an extension to help themselves.