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.
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"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.
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