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CONSOLIDATED FINANCIAL REPORT | EXPLANATORY NOTES
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31. RECEIVABLES FACTORING
With reference to factoring programmes, the Group has made use of without-recourse factoring of trade
receivables. The amount of receivables factored but not yet paid by customers was Euro 258 million at 31
December 2015 (Euro 262 million at 31 December 2014).
32. FINANCIAL COVENANTS
The credit agreements in place at 31 December 2015, details of which are presented in Note 12, require the
Group to comply with a series of covenants on a consolidated basis. The main covenants, classified by type,
are listed below:
a)
Financial covenants
Ratio between EBITDA and Net finance costs (as defined in the relevant agreements);
Ratio between Net Financial Position and EBITDA (as defined in the relevant agreements).
The covenants contained in the various credit agreements are as follows:
(1)
The ratios are calculated on the basis of the definitions contained in the relevant credit agreements.
b)
Non-financial covenants
A number of non-financial covenants have been established in line with market practice applying to
transactions of a similar size and nature. These covenants involve a series of restrictions on the grant of
secured guarantees to third parties, on the conduct of acquisitions or equity transactions, and on
amendments to the Company's by-laws.
Default events
The main default events are as follows:
default on loan repayment obligations;
breach of financial covenants;
breach of some of the non-financial covenants;
declaration of bankruptcy or subjection of Group companies to other insolvency proceedings;
issuance of particularly significant judicial rulings;
occurrence of events that may adversely and significantly affect the business, the assets or the
financial conditions of the Group.