30th Oct 2013 07:57
LONDON (Alliance News) - Pawnbroker Albemarle & Bond Holdings PLC Wednesday said it had reached a deal with its lenders to defer a test of its covenants until February 3, giving it more time to try and turn around the business and resolve its tight financing situation.
The company has run into financial difficulties after gold prices fell sharply earlier this year. It has been in talks with its lenders since the end of September about extending the testing date for its covenants after discussions with its largest shareholder about an equity raising failed, meaning it will potentially breach the covenants.
It had previously got an extension of the test date from the end of September to the end of October.
The pawnbroker and jeweller has appointed a new chief executive and a chief restructuring officer, and said Wednesday they are making good progress on reviewing its operations, while keeping its shops open and trading.
"The board will provide a further update on its plans as soon as it is appropriate and will release the 2013 final results as soon as is practicable thereafter," it said.
Albemarle warned that current trading continues to be challenging.
"Today's further covenant testing date deferral agreement is testament to our constructive working relationship with the banks and to their support while we explore a range of financing, strategic and turnaround options," new Chief Executive Chris Gillespie said in a statement.
By Steve McGrath; [email protected]; @SteveMcGrath1
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