Common use of Fixed Charge Coverage Ratio Covenant Clause in Contracts

Fixed Charge Coverage Ratio Covenant. During the continuance of a Covenant Compliance Event, the Loan Parties shall not permit the Fixed Charge Coverage Ratio, calculated for any Reference Period as of the last day of each fiscal month commencing with the fiscal month immediately prior to the date that the Covenant Compliance Event occurs, to be less than 1.0:1.0. 1. Is covenant required to be tested? Yes o No o 2. If covenant is required to be tested, in compliance? Yes o No o