Viad Corp (VVI), a live events and experiential marketing firm, owns 56.4% of Esja, a private company in Iceland which owns the FlyOver Iceland attraction. Previously, FlyOver Iceland has been allowed to defer principal payments on its $5.6 million credit facility. Likewise, the lender has also extended the facility’s maturity date multiple times.

The lender even agreed to a semi-annual waiver of certain covenants through June 30, 2022, with the first testing date December 31, 2022.

As lenient as the lender has been, it does not appear to be enough. In its latest quarterly filing, Viad inserted new language indicating FlyOver Iceland will run afoul of certain covenants when the original waiver expires and that the lender has granted a new, multi-year waiver:

“We expect to be unable to meet our financial covenants under the FlyOver Iceland Credit Facility beginning with the first testing date as of December 31, 2022. Effective November 2, 2022, FlyOver Iceland received a waiver for the 2022 through 2023 financial covenants.”

Viad says it is in compliance with all covenants of its $500 million revolver.