Question-and-Answer Session
Operator
Alright, thank you sir. Ladies and gentleman, this time we will begin our question and answer session. (Operator Instructions). Our first question's from the line of Burk Chow (ph) with Simmons & Company. Please go ahead.
Unidentified Analyst
Hi. Good morning everyone. Thanks for taking the call. Just a couple of questions and the first question is basically on the debt covenants. If you look at the cyclicality of the business, the quarter that we are currently in, is generally the weakest quarter. And if you do kind a quick swag at the indebtedness of the EBITDA covenants, we get pretty close. You mentioned that you have a certain ... some strategies in place if you do feel uncomfortable at the head room.
So the first question is that how comfortable are you and how likely is it going to be that you do bump up against those debt covenants? And secondly, if you could give some color on what those strategies would be if you get close enough to those?
Kirk Benson
I'll comment first and then Steve can follow up. We are of course quite cognizant of these debt covenants. It's something that is a high priority for the management team to monitor and manage in such a way that we can maintain compliance with the covenants.
So some of the things that we are implementing is a very straight approach to comparing our actual performance with our ... with the cost savings initiatives that we have in place. So we've established a base line of performance and we are monitoring against that base line to ensure that we maintain our covenant compliance. So, that's the matter of, of course meeting weekly and working on these issues weekly and then monitoring monthly, comparing our baseline performance with the cost improvements that we have underway.
So that's one of the significant areas that we're involved in to ensure that we stay in compliance with the covenants.
Second thing that we're looking at is the opportunity to sell some assets that may not be core assets to the business. There are opportunities to be able to do that and the sales wouldn't have a significant impact on EBITDA but would allow us to continue to reduce the amount of our senior debt.
We also think that if you look at the covenants that we're closest to non-compliance, is our total indebtedness to EBITDA covenant. We are ... we have significant head room in our senior debt to EBITDA covenant, which basically means that our senior debt have a lot more room in the covenant which should allow us if we think that it is necessary to request an amendment to the debt, because were still under leveraged relative to our senior indebtedness. For example, in the quarter we have trailing 12 months EBITDA of about 130, well more than $130 million and $200 million of senior indebtedness. So, we are not overly leveraged in the senior debt category.
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