Morpol is getting some breathing space after the waiver of a gearing ratio covenant in its five-year loan facility of €250 million ($325.5 million), the company said on Thursday.
The revised level of gearing ratio for the third quarter of 2012 amounts to 3.75; and the revised level of gearing ratio for the fourth quarter of 2012 amounts to 4.00.
A gearing ration is the financial ratio that compares some form of owner's equity (or capital) to borrowed funds. Gearing is a measure of financial leverage, demonstrating the degree to which a firm's activities are funded by owner's funds versus creditor's funds.
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