Rural services group Elders has secured a crucial three-month extension with its lenders on a looming refinancing of $905 million and also struck an agreement to have its financial covenants under its bank facilities and US private placement notes waived.
The Australian Financial Review reports that Elders, formerly known as Futuris, said its financiers had agreed to give it an extension until September 30 by which time the group hoped to have in place a syndicated facility to replace its current multi-option facilities. The group had previously said the facilities needed to be refinanced by June 30.
"The extension and covenant waiver will enable orderly completion of the refinancing exercise over the course of the coming months," chief executive Malcolm Jackman said.
Elders has forecast net debt to reach $800 million by June 30, down from the $959 million it held in the six months ended December 31.
Elders has forecast a full-year loss of between $5 million and $15 million compared with the year-earlier net profit of $36.4 million, but it expects conditions to improve in 2010 with a net profit range of $43 million to $73 million.
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