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Real estate developer Country Garden Holdings is asking for consent to modify the terms and conditions of its outstanding dollar bonds. [ABSTRACT FROM AUTHOR]

The article discusses the debate among bankers on whether more oil companies will follow oil refining Petron Corp and oil and gas company Petramina in changing covenants on existing borrowings, with some believing revisions are justified while some see changes to show needs specific to the company. Topics discussed include Petron wanting redefinition of leverage ratio to address inventory loss and gain, and Petramina wanting to emphasize its net worth as opposed to earnings.

Indonesian oil and gas company Pertamina has asked banks to review covenants on a loan it wrapped up in February, as future capital expenditure requirements might make it difficult for it to stick to the existing conditions. [ABSTRACT FROM AUTHOR]

The article reports that bond investors have expressed optimism that the Colombian oil company Pacific Rubiales Energy will not breach any of its covenants. Topics discussed include the decline of the company's bond value, the factors that fueled speculations that there will be a covenant breach by Pacific and the effects of the prices of oil on Pacific's bond performance.

The article discusses price competition among large and small U.S. banks for commercial and industrial lending. Topics include competition between large banks including Wells Fargo and Bank of America, and smaller regional and community banks, pressure on community banks to extend covenants, and the advantage of large banks in being able to offer more fee-based products.

The article offers information on two primary financial covenants in the revolving line of credit (LOC) agreement of a business. It mentions the fixed-charge coverage ratio and the tangible net worth ratio defining business performance that should remain within the business loan. It also notes the importance of having maximum flexibility of the business with a substantial tangible net worth loan pro forma and the interest expense added to debt principal payments.

The article reports that extra covenants or extra investor protection has boosted the competitive edge of Indonesia's high yield credits against Chinese credits. Indonesian credits are trading at five to seven percent, while Chinese names such as Agile Holdings Property and Shui On Development are settling at seven to 7.5%. A senior trader claims that people prefer Indonesia over China due to its diversity.

The article discusses covenant-lite loans or loan deals that lack financial maintenance covenants that test borrowers' financial strength in terms of equity, leverage of liquidity or that restrict companies' investment expenditures or operating activities. The demand for covenant-lite deals in the U.S. as of second-quarter 2012 is mentioned. Deals led by Barclays and JPMorgan investment banks and by Credit Suisse bank are also mentioned.

The article reports on the March 29, 2012 announcement by Russia-based coking coal producer Mechel regarding the potential breach of its financial covenants on some of its credit facilities for the year ended December 31, 2012. It states that the potential breach is caused by the prevailing market conditions and price decline of Mechel's products. Moreover, it presents the insights of Renaissance Capital analyst Boris Krasnojenov on the corporate outlook.