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Premier Foods secures agreement from banking syndicate to defer upcoming covenant test;
Constructive discussions continue over longer term refinancing of debt beyond its current maturity of December 2013
Premier Foods today announces that it has obtained agreement from its banking syndicate to a deferral of the company's forthcoming financial covenant test from 31 December 2011 to 31 March 2012. This agreement 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.
Commenting on progress, Michael Clarke, Chief Executive Officer, said:
"This is an important step towards securing a longer term financial foundation for the business. I am very pleased that after sharing our vision and high-level plans, our banking syndicate has confirmed its support."
"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."
Further updates regarding the discussions with the banks will be provided as appropriate. The company expects that a further announcement on the long-term refinancing of its debt and extension of its facilities will be made at the conclusion of those discussions.
For further information, please contact:
Lisa Attenborough, Group Director of Communications 01727 815716
Richard Godden, Head of Investor Relations 01727 815927
Brian Hudspith/Tom Eckersley 020 7379 5151
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