To the best of our knowledge, the village of Innaarsuit, Greenland (pop. 169) is not on any “Best Summer Vacation” lists. Being in the Arctic Circle, it’s cold and dark most of the year. Not much exciting going on. But that has changed in a dramatic fashion.

Last month an iceberg weighing 11 million tons parked itself next door. At 300 feet high, it rivals the Statue of Liberty and is visible from space. If pieces start sliding off, scientists worry it could swamp the town. “It’s not a peaceful process,” one remarked.

We took note recently of similar concerns in the leveraged loan market; specifically, S&P LCD’s just-published piece in their weekly wrap on middle market recoveries.

Numerous Lead Left columns have highlighted today’s weakening structures. While the variety of terms being chiseled away covers a broad spectrum, they come in two basic areas.

The first is the definition of ebitda, which has become diluted through add-backs and pro forma adjustments. The second is incremental debt. Here we’ve seen that the opening balance sheet debt is just a starting point. Private equity owners seek to build into credit agreements allowances for additional financing capacity. Those debt baskets provide for growth for, as one example, add-on acquisitions.