Struggling food manufacturer Premier Foods has been given a bit of breathing space by its bankers, who have agreed to defer the company's end-of-year loan covenant tests by three months.
The company, which a month ago issued a profits-warning and which has seen its share price dive by two-fifths since, said the agreement with its bankers forms part of the company's discussions about longer term refinancing of the group's debt and confirms ongoing bank support for the business.
The company announced in October that it was in constructive discussions with its banks to put in place refinancing facilities beyond their current maturity of December 2013. These discussions continue to be constructive and the banking syndicate has confirmed that it remains supportive both of the business and the continued discussions.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"In recent weeks, we have set out our priorities and made significant leadership changes to strengthen our focus. We are now moving quickly to finalise our detailed growth plans to ensure we continue to build momentum in the business," said Michael Clarke, Chief Executive Officer of Premier.
--
jh
-
The price of copper has risen – how long will the bull market last?The price of copper has leapt to almost a two-year high, but demand for the metal continues to outstrip supply. How long will the market remain bullish?
-
TSB set to close 36 bank branchesTSB joins the list of high street banks closing their doors to its branches as it claims more customers are moving online - we have the full list of closures
