# Extract Loan Agreement Terms Scenario 01 > Ensures a loan term extraction memo covers financial covenant terms, cross-default mechanics across related facilities, mandatory prepayment provisions, change-of-control definition differences, and near-term strategic deadlines relevant to restructuring planning. - Skill: `finchipaiorg/extract-loan-agreement-terms-scenario-01` (Agent Skill) - Install (CLI): `npx skillmds@latest add finchipaiorg/extract-loan-agreement-terms-scenario-01` - Raw SKILL.md: https://api.skillmd.com/api/skills/finchipaiorg/extract-loan-agreement-terms-scenario-01/raw - Safety review: pending - Works with: Claude Code, Claude.ai, OpenAI Codex - Category: Coding & Dev Tools - Author: FinchipAIOrg (https://skillmd.com/u/finchipaiorg) - Updated: 2026-09-22 - Page: https://skillmd.com/skills/finchipaiorg/extract-loan-agreement-terms-scenario-01 --- # Skill: Extract Loan Agreement Terms — Restructuring Strategy Development ## 1. Subject-matter triage (only if applicable) - This is a document-extraction and issue-spotting exercise, not a rewrite. Read the credit documents as a set and extract the terms that drive restructuring leverage, default sequencing, and timing. - First determine whether multiple facilities, tranches, or related agreements are in scope. If so, enumerate each one explicitly before analysis and keep the memo row-based by facility. - Treat the intercreditor agreement as a separate control document. Extract its transfer, enforcement, payment, standstill, and turnover mechanics only to the extent they affect restructuring strategy. - If the source set contains only one facility or one relevant covenant period, say so affirmatively and do not force a cross-facility comparison. ## 2. Failure modes the skill is correcting - Agent summarizes the loan package generally but misses the terms that actually constrain strategy: maturities, covenant tests, default interest, sweep mechanics, mandatory prepayments, consent thresholds, and control-transfer triggers. - Agent reads each agreement in isolation and fails to trace how a default in one document interacts with defaults, blockers, or enforcement rights in another. - Agent extracts economics but omits timing: cure periods, notice windows, testing dates, springing covenants, springing cash dominion, reporting deadlines, and maturity walls. - Agent identifies a covenant or default without tying it to the relevant threshold, related provision, and practical consequence for negotiations or filing strategy. - Agent omits distinctions across facilities in change-of-control, permitted indebtedness, restricted payments, asset sales, or prepayment provisions that can create uneven lender leverage. - Agent gives a narrative summary instead of a usable restructuring memo organized around decision points and deadlines. ## 3. Legal frameworks / domain conventions that apply - Credit agreement terms are read by section, defined term, and schedule. Preserve the agreement’s own terminology and map cross-references, rather than paraphrasing away the operative mechanics. - Financial covenant analysis should identify the covenant, the applicable test period, the metric used, and whether it is a maintenance or incurrence test. - Default analysis should distinguish between event of default, automatic acceleration, optional acceleration, and standstill-limited remedies under intercreditor arrangements. - Cross-default and cross-acceleration provisions must be traced against each related debt instrument separately, because the trigger threshold, grace period, and excluded indebtedness may differ. - Change-of-control provisions often differ across facilities and may include direct/indirect ownership changes, board control shifts, or asset-sale driven control transfers. - Mandatory prepayment provisions should be extracted by source of proceeds and by priority: asset sales, insurance/condemnation, incurrence proceeds, equity proceeds, and excess cash flow. - Intercreditor documents commonly govern enforcement standstills, purchase rights, turnover, release mechanics, voting, and priority of payments; those provisions often determine the real restructuring path. - For any legal proposition relied on, identify the controlling source in the agreement itself or the governing authority used by the document set; do not state a conclusion without the rule or clause that supports it. ## 4. Analytical scaffolds - For each facility, extract: - borrower and guarantor scope - principal amount and outstanding balance if stated - maturity date and extension mechanics - interest rate, default rate, floors, and PIK features if any - amortization and scheduled repayment profile - financial covenants, test dates, and headroom mechanics - restricted payments, investments, indebtedness, liens, and asset sale baskets - mandatory prepayment triggers and application waterfall - cross-default, cross-acceleration, and bankruptcy default language - change-of-control definition and consent consequences - reporting obligations, field exam rights, borrowing base mechanics, and notice requirements - amendment and waiver thresholds, sacred-right concepts, and lender class voting rules - For intercreditor analysis, extract: - payment block and standstill periods - enforcement control and purchase options - turnover and priority rules - release provisions and access to collateral proceeds - debtor-in-possession or rescue financing constraints if addressed - For strategic timing, build a chronological list of: - near-term reporting dates - covenant test dates - notice or cure deadlines - springing event triggers - maturity or repricing cliffs - any consent or refinancing windows - For each material issue, pair the term with its threshold or trigger, the clause it interacts with, and the restructuring consequence. - When multiple facilities are present, compare them in a single matrix so differences in trigger, remedy, and leverage are visible at a glance. ## 5. Vertical / structural / temporal relationships (only if applicable) - Compare the facilities vertically: first-lien versus junior debt, revolving versus term debt, secured versus unsecured, and any pari passu or subordinated layer. - Track whether an event in a junior instrument can cascade upward into a senior default, or whether a senior default gives rise to junior payment blockage or enforcement restrictions. - Identify temporal sequencing: which obligations mature first, which tests are next, which notices must be given before a default ripens, and which cure periods run concurrently or consecutively. - Note any springing mechanics that activate only after leverage, liquidity, or availability falls below a specified level. - Where the intercreditor agreement changes ordinary contract rights, state the practical effect on negotiation leverage, enforcement timing, and holdout risk. ## 6. Output structure conventions - Produce a structured memo in conventional legal-memo form, using headings that track the document set rather than the rubric. - Include a facility-by-facility table that captures the operative terms and another comparison table for differences across facilities. - Include a separate section for intercreditor constraints and another for near-term deadlines in chronological order. - Use concise, extraction-oriented prose; avoid advocacy unless it is tied to a strategic consequence. - Preserve quoted terms only when necessary to capture a defined term or operative carveout, and do not overquote. - End with a short action-oriented section that identifies the restructuring implications of the extracted terms and the immediate follow-up items for the team.