Debt-beset Cordiant Communications – the world's ninth-largest advertising group – announced late Friday afternoon it had inked an agreement with its bankers to reschedule its debts.
The deal ends speculation – for the time being at least – that Cordiant, parent of Bates Worldwide, is in danger of violating its debt covenants incurred after over-ambitious expansion during the stock market bonanza in the twilight years of the twentieth century.
In statement last month (March 8) to the London Stock Exchange, Cordiant said: “This agreement in principle is subject, inter alia, to completion of full documentation by April 19 2002. Cordiant will announce its 2001 preliminary results, together with details of the new financing arrangements and the increased financing costs and fees, shortly after completion of full documentation.''
The interim results have yet to be published and yesterday’s announcement came after share trading had ceased for the day. However, the entrail-rakers are clearly biding their time until the announcement of Cordiant’s interim results. At mid-morning today (Monday) the group’s shares had declined by £0.065 ($0.94; €1.06) to £0.735.
Data sourced from: AdAgeGlobal.com; additional content by WARC staff