Economic Development Corporation of the County of Ottawa
CUSIP 689238AC7
- Issue Currency: United States of America Dollars
- Announcement Date: 30-Jun-2017
- News: The Trustee is in receipt of the attached officers certificate delivered to it by the Hospital with financial information from the Hospital reporting its failure to comply with the Coverage Ratio pursuant to the Loan Agreement. Pursuant to Section 11.19(a) of the Loan Agreement the Hospital is required to maintain a Debt Service Coverage Ratio of 1.20. If said ratio is less than 1.20 the Hospital covenants to retain a Management Consultant, within 45 days to make recommendations to increase the said ratio for subsequent Fiscal Years to at least 1.20. The Hospital is required to follow to the extent legally permitted and consistent with sound business practices, the recommendations of the Independent Consultant. Pursuant to the attached certificate the Coverage Ratio of the Hospital as of June 30, 2016 was negative 11.9. Section 11.19(d) of the Loan Agreement states that if the Coverage Ratio is less than 1.00:1 then it shall constitute an Event of Default under the Loan Agreement. Pursuant to Section 702 of the Indenture an Event of Default under the Loan Agreement constitutes an Event of Default under the Indenture.
- Issue Currency: United States of America Dollars
- Announcement Date: 30-Jun-2017
- News: The Trustee is in receipt of the attached officers certificate delivered to it by the Hospital with financial information from the Hospital reporting its failure to comply with the Coverage Ratio pursuant to the Loan Agreement. Pursuant to Section 11.19(a) of the Loan Agreement the Hospital is required to maintain a Debt Service Coverage Ratio of 1.20. If said ratio is less than 1.20 the Hospital covenants to retain a Management Consultant, within 45 days to make recommendations to increase the said ratio for subsequent Fiscal Years to at least 1.20. The Hospital is required to follow to the extent legally permitted and consistent with sound business practices, the recommendations of the Independent Consultant. Pursuant to the attached certificate the Coverage Ratio of the Hospital as of June 30, 2016 was negative 11.9. Section 11.19(d) of the Loan Agreement states that if the Coverage Ratio is less than 1.00:1 then it shall constitute an Event of Default under the Loan Agreement. Pursuant to Section 702 of the Indenture an Event of Default under the Loan Agreement constitutes an Event of Default under the Indenture.
- Issue Currency: United States of America Dollars
- Announcement Date: 03-Dec-2017
- News: The Trustee previously reported that it was in receipt of an officers certificate delivered to it by the Hospital with financial information from the Hospital reporting its failure to comply with the Coverage Ratio pursuant to the Loan Agreement. Pursuant to Section 11.19(a) of the Loan Agreement the Hospital was required to maintain a Debt Service Coverage Ratio of 1.20. If said ratio was less than 1.20 the Hospital was obligated to retain a Management Consultant, within 45 days to make recommendations to increase the said ratio for subsequent Fiscal Years to at least 1.20. The Hospital wasrequired to follow to the extent legally permitted and consistent with sound business practices, the recommendations of the Management Consultant. Pursuant to the certificate the Coverage Ratio of the Hospital as of June 30, 2016 was negative 11.9. Section 11.19(d) of the Loan Agreement provided that if the Coverage Ratio was less than 1.00:1 then it shall constitute an Event of Default under the Agreement. Pursuant to Section 702 of the Indenture an Event of Default under the Loan Agreement constitutes an Event of Default under the Indenture. Thus, an Event of Default has occurred under the Bond Documents. The Trustee was also informed that it was anticipated that the Debt Service Coverage Ratio would be out of compliance for the fiscal year ending June 30, 2017.
