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Question · Covenants to be met at the end of the period or before, or after

At 31 December 2026, Ibis SA has two loans. Loan X (5,000,000) complies with its covenant at the closing date; its next instalment, of 700,000, is due in 2027, and Ibis has the right to defer settlement of the balance beyond 12 months. Loan Y (4,000,000), maturing in 2031, is subject to a covenant to be complied with at 31 December 2026, which is not complied with, with no waiver obtained at that date (case facts). Calculate the total of the loans classified as current, then the total classified as non-current.

Loan X (covenant met at the closing date)
5,000,000
Instalment of loan X due in 2027
700,000
Loan Y (covenant not met at the closing date)
4,000,000
Your answer

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