Debt Default
Whether the organization is in default or delinquency on any debt or lease obligation.
Formula: Qualitative determination
Meets Standard: No default MS · waived covenant violation MS with disclosure · default DNMS
resultQualitative review of debt, covenant, default, delinquency and waiver disclosures
Rating threshold: No default/delinquency = MS; covenant violation cured by waiver = MS with disclosure
- Note 7 discloses a facility loan and a line of credit.
- One covenant (days cash) was violated at year end; a written waiver was obtained from the lender.
- No payment default or delinquency.
No default/delinquency = MS; covenant violation cured by waiver = MS with disclosure
Covenant violation with waiver / MSThe published report records simply 'No' default. The Nsites review found a waived covenant violation, which the framework treats as disclosable but non-defaulting. Ratings agree; the qualitative descriptions differ.
Suggested reconciliation: Confirm with OEI whether waived covenant violations should be disclosed in the CQ2 narrative.
- 1. Source documents ingested and classified.
- 2. Raw values extracted with page/cell coordinates.
- 3. OEI mapping and accounting treatment applied.
- 4. Formula executed — targets not in engine memory.
- 5. Nsites result locked 18:16:12 UTC.
- 6. Salesforce/CAP and published CQ2 revealed 18:16:43 UTC.