Junk-Rated Firms Using Overdrafts Risk Test Breach as Sales Fall
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A selection of five, ten and 20 euro banknotes sit in this arranged photograph.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
Leveraged European companies using emergency credit lines while the pandemic wipes out their earnings, risk breaching conditions on the debt, potentially driving them into technical default.
Companies that have raised leveraged loans in Europe currently have revolving credit facilities -- a kind of corporate overdraft -- worth about 58 billion euros ($63 billion) at their disposal, data compiled by Bloomberg show.