21st Dec 2015 12:58
LONDON (Alliance News) - Education support services company Tribal Group PLC said Monday it has agreed with its banks to waive the testing of its financial covenants for 2015, which will allow it to remain in compliance with the terms of its debt facilities.
This will in turn allow it to progress with its proposed rights issue in the first quarter of 2016.
This bank agreement follows news earlier this month that Tribal is planning a GBP30.0 million rights issue to help cut its debt and provide working capital, as it warned its adjusted operating profit for the year will likely be "significantly lower" than previously expected as a result of delays in contract milestones and slow sales momentum.
At that time Tribal had warned its lenders it may breach the covenants of its revolving credit facility, under which it can borrow up to GBP50 million.
Tribal shares were up 6.0% at 25.45 pence Monday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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