Findus Group has a struck a deal with its lenders that will give the frozen-food group more breathing space as it battles volatile commodity costs and fluctuating currencies.

The company, which makes frozen food under its namesake brand and under the Young’s label, has secured approval from its lenders for a “covenant re-set”, a spokesman said today (17 December).

In an exchange for a fee, Findus has got the green light to widen its leverage ratio from 5.6 times earnings to net debt to 6.2 times.

The agreement is said to only last for the month of December prompting speculation that Findus and its private-equity owners Lion Capital will need to draw up a longer-term solution to its debt pile.

The Findus spokesman, however, refused to comment on what the company and Lion Capital could consider.

“We are delighted with the support shown by our lenders to provide a solution to a short-term situation caused by some extraordinary conditions largely out of our control,” the spokesman said.

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“Findus is a strong, stable, cash generative and innovative business that will continue to lead its marketplace and deliver excellent service and products to its customers. This is just a prudent move to give the group flexibility to continue to implement its strategy to deliver further growth.”