01 April 2009 12:56

European newspaper group Mecom announced a further extension to a covenant test date as part of negotiations with its banking and finance partners.

The group said it has also agreed an extension to the maturity date of its Convertible Loan Notes to 12 May. The covenant test date will be extended until 30 April.

Mecom has not been required to pay a fee for either of these extensions.

"The company is continuing constructive discussions with its lending banks with a view to concluding certain amendments to its debt facilities so as to provide financial stability in the medium term," said the group.

Last week, Mecom said it was considering an equity fund raising on the basis that it adds value to the negotiations with its banking and finance partners.

Related Companies: MEC

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