Thursday, April 02, 2009
Pendragon Confirms Discussions with Lenders
The UK's largest dealer group Pendragon today confirmed that it is in the process of negotiating its borrowings.
In a statement, it said: "The Board of Pendragon notes the increase in the Group's share price following recent press speculation about a potential restructuring of its existing borrowing arrangements.
"Pendragon confirms it has been reviewing its financing structure in light of the current economic climate.
"As part of that review we can confirm that we are having discussions with lenders regarding changes to our loan agreements which would make them more appropriate for anticipated future trading conditions.
"We will make a further announcement when appropriate.
Pendragon has been busy cutting the debt pile left over from its takeover of Reg Vardy by reducing staff count and dealer outlets.
The company was forced to request a covenant waiver late last year in order not to breach the terms of its borrowings.
There had been speculation that renegotiating its debts will cost £25m, including a one off hit of £7.5m.
DATED: 02.04.09
FEED: AM
In a statement, it said: "The Board of Pendragon notes the increase in the Group's share price following recent press speculation about a potential restructuring of its existing borrowing arrangements.
"Pendragon confirms it has been reviewing its financing structure in light of the current economic climate.
"As part of that review we can confirm that we are having discussions with lenders regarding changes to our loan agreements which would make them more appropriate for anticipated future trading conditions.
"We will make a further announcement when appropriate.
Pendragon has been busy cutting the debt pile left over from its takeover of Reg Vardy by reducing staff count and dealer outlets.
The company was forced to request a covenant waiver late last year in order not to breach the terms of its borrowings.
There had been speculation that renegotiating its debts will cost £25m, including a one off hit of £7.5m.
DATED: 02.04.09
FEED: AM
