Cure Period
Short definition
A cure period is the contractual window to fix a breach before it is a default. Payment default and ratio breach often have different clocks; equity cure is a separate right.
Detailed explanation
Notice plus 5/10/30 business days is a typical pattern. On a financial covenant, a cash injection (equity cure) can pull the ratio back; how often and which line it credits is written down.
Draws may still be blocked during the window. Expiry of the window is default, not a waiver.
Why it matters for the CFO
This window sets the calendar for a cash or equity round. The 13-week plan must fit the cure.
How to read it
No cure right means breach is default. Having a cure is negotiating time — not a guaranteed fix.
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What to learn next
Definitions are educational. They are not investment, credit or tax advice.