Burton paid a $4 million bank fee to amend a loan covenant
Jake Burton Carpenter · Burton Snowboards: Jake Carpenter · Oct 23, 2017 · at 30:05
Jake Burton Carpenter, founder of Burton Snowboards, details the financial penalties the company faced during the 2008 economic downturn.
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“Well, the bank charged us four million dollars to change one paragraph in our loan agreement, which was called a covenant. When you're borrowing money, your earnings had to represent a certain ratio compared to how much money you were borrowing, and we slipped on that one because it was a very tough year, and we weren't losing money. We were making money but literally they said, oh, well, you broke this covenant, so you're going to pay a four million dollar fee.”
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