FASCINATION ABOUT HBS CASE STUDY ANALYSIS

Fascination About HBS Case Study Analysis

Fascination About HBS Case Study Analysis

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The explanation powering these covenants could be the bottom rating of Williams. By imposing these covenants, Lehman-Berkshire Hathaway could lower its default threat. The present desire protection ratio and fixed charge ratio of Reprehensibility healthy and it is expected to reduce the working capital expenditure of $300 tens of millions also making sure that it wouldn't be a dilemma for Williams to just accept these terms. By accepting these covenants, it is anticipated that Williams will raise dollars at lower interest rate.

It is additionally anticipated that Williams is not going to expend much more than $ 300 thousands and thousands on money expenditure and may give attendance rights to Lehman-Berkshire Hathaway in all its board of administrators conferences. It will limit Williams’ intre corporation indebtedness and will also impose boundaries to keep up dad or mum liquidity as many as 750 million.

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