12 Aug 2026 · Journal
Opening a mandate after a covenant breach
A breach is a calendar event. A mandate is a decision about who speaks, who calculates, and who stays quiet. Mixing the two is how rumours start on Wucyuan Road before the bank has even opened the file.
We ask for three documents before we agree to sit down: the facility letters as executed, the last three months of the cash pool, and the list of related-party balances the finance team actually believes. If any of those is “being cleaned up,” we wait. Cleaning is not a crime; presenting a cleaned number as historical fact is how a later credit meeting becomes a deposition in all but name.
The first 72 hours are for a 13-week view with haircuts labelled as haircuts. They are not for a new equity story, a factory tour for journalists, or a promise that “management is aligned.” Alignment is a minute, not a feeling. If siblings disagree, the pack should say so in a sentence a credit officer can highlight.
Taiwan groups often want to notify everyone at once to appear transparent. Simultaneous notification without a claims map just multiplies questions. We prefer a sequence: board (including independents), then the agent bank, then the rest of the syndicate, then major trade creditors if letters of credit are at risk. The order can change; the existence of an order should not.
Panel FlowHub will not open a mandate that requires us to attend court as advocate. If the breach is already a petition, we introduce counsel and remain, at most, a numbers desk. That boundary is also how we keep the reconstruction studio from pretending it is a bar course.