ACE.L Share News (ACE)

LONDON (Dow Jones)--Car hire company Accident Exchange Group PLC (ACE.LN) Friday said its senior lender is considering converting its convertible loan note holding in to a equity stake in the company, adding it is also in talks with a number of asset-backed lenders about funding. The firm--which late last year said it may not meet its banking covenants--is in talks with holders of the GBP50 million 5.5% unsecured convertible loan notes in the company about a restructuring. It said its senior lender--which holds about 40% of the loan notes--has indicated that, subject to the support of the other loan note holders, it is willing to consider converting its convertible loan note interest into an equity interest as part of a restructuring. The lender is also willing to amend the terms of its GBP40 million senior credit agreement to, among other things, extend the maturity date to 2013 from September 2010, subject to agreeing terms with Accident Exchange. Accident Exchange said it is also in talks with a number of asset-backed lenders, with a view to increasing available vehicle funding facilities once it has refinanced. It will further update on the refinancing talks in due course. -By Hannah Benjamin, Dow Jones Newswires; 44-20-7842-9298; hannah.benjamin@dowjones.com (END) Dow Jones Newswires July 09, 2010 02:52 ET (06:52 GMT)