Litigation Capital gets short-term extension to debt covenant waiver

(Sharecast News) - Litigation Capital Management announced on Tuesday that it has secured a short-term extension to its existing debt covenant waiver, providing the alternative asset manager with additional time as it continues its strategic review. The AIM-traded group said the covenant waiver agreed with its lender, Northleaf Capital Partners, which had been due to expire on 30 December, had now been extended to 31 January.

During the extended waiver period, interest on the loan would continue to be charged at an increased rate of two percentage points per annum, in line with the terms of the original waiver.

LCM added that there was no additional one-off waiver fee associated with the extension.

The company said the decision reflects Northleaf's ongoing support as the strategic review announced in September continued, with management expected to provide an update on its progress in the new year.

At 1558 GMT, shares in Litigation Capital Management were flat at 7p.

Reporting by Josh White for Sharecast.com.