UK frozen food retailer Iceland has denied reports that it has not succeeding in finding support for a rights issue to raise cash.

According to a report filed by Reuters, Iceland referred today [Friday] to the media speculation that sent shares plummeting close to four-year lows as “scurrilous rumours”.

The new management team headed up by Bill Grimsey estimates that a complete recovery could take up to four years. Grimsey is expected to reveal how he plans to fund the recovery following a share price collapse early last year.

The media speculation in question concerns rumours of a further 10% slide in the group’s sales, along with a possible breach of banking covenants. The company’s shares fell by 7% after the rumours gathered speed although recovered to end up 1% at 136p.