Many Treasurers think they can talk their way out of a default. This is particularly true for Treasurers with no covenant list, so they don’t know how many significant covenants they can breach. And few Treasurers know what GAAP will require the auditors to do in a default.
You can’t keep a default a secret. Before the lenders, auditors, and Board are informed, you will first report the default(s) to your CFO, Chief Counsel, CEO, and outside counsel. Then: