According to a statement issued Thursday, London-headquartered Cordiant Communications – which has yet to publish its trading results for 2001 – reached agreement in principle over the restructuring of its banking covenants to take account of last year’s expected nine percent fall in earnings.
The deal, which is conditional upon the completion of full documentation by April 19, will include new covenants for periods ending on or after December 31 2001.
Commented one London analyst: “It gives Cordiant a degree of financial stability that was perhaps in question before. It will also shore up the confidence of clients. They will be able to retain clients that were perhaps a bit doubtful before and it will help them get on pitch lists.”
The group now intends to unveil its 2001 preliminary results – originally scheduled for March and repeatedly postponed – alongside details of its new financing agreement and the increased costs and fees, shortly after the deal’s completion deadline of April 19.
Meantime, Cordiant’s shares on the London stock exchange rose marginally by 0.5% to £0.95 at 11am today (Tuesday).
Data sourced from: AdWeek.com; additional content by WARC staff