Findus Group has asked its lenders to delay an assessment of its debts as it looks to integrate its acquisition of Cumbrian Seafoods.
Findus, which owns the UK seafood business Young’s Seafood, has asked banks to waive a fourth-quarter covenant on its GBP700m (US$1bn) debt.
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A spokesman said December’s acquisition of Cumbrian, which took place immediately after it went into administration, was undertaken in a “separate vehicle” to its existing debt and it is now seeking to integrate Cumbrian into Young’s, a move he said makes “considerable sense”.
Findus, acquired by private-equity firm Lion Capital in 2008, is in the middle of a consultation over jobs and has declared that 555 staff at Cumbrian and 70 jobs at subsidiary Cromer Crab Company are under threat.
When asked if more jobs could be under threat the spokesman said the consultation is ongoing.
He added: “Whilst sales have continued to be steady, the whole of the food industry is being affected by food inflation. It’s tough, it’s competitive and I don’t think Findus is alone.”
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By GlobalDataIn 2010, Findus struck a deal with its lenders to get a “covenant re-set”, In exchange for a fee, Findus was allowed to widen its leverage ratio from 5.6 times earnings to net debt to 6.2 times, giving it breathing space.
Last month, private-equity firm Lion Capital suspended talks to sell its Findus unit in France to a potential buyer, thought to be rival buy-out house and Iglo Group owner Permira, according to the French press.
In October, it emerged that Lion Capital was in talks to sell the Nordic operations of Findus.
