Question: What are restrictive covenants? Why are restrictive covenants sometimes included as part of debt agreements? How does a borrower benefit from a restrictive covenant? Why

What are restrictive covenants? Why are restrictive covenants sometimes included as part of debt agreements? How does a borrower benefit from a restrictive covenant? Why would a borrower prefer to avoid having restrictive covenants in loan agreements, assuming no changes in the other terms of the loan?

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