(Sharecast News) - Niche lender Distribution Finance Capital has received an extension to a temporary waiver for an early amortisation provision in its funding facilities from its senior and senior mezzanine facility lender.
Distribution Finance said on Tuesday that it has been working collaboratively with lenders, with the objective of agreeing on the shape of its funding facility and covenants appropriate for the current climate - particularly as the loan book stock turn has slowed in light of most dealers being closed during the Covid-19 pandemic.
Both the DF and its lenders believe that without further operating data relating to the emerging trading pattern of dealers and the impact of the lockdown, it was too difficult to agree on appropriate terms for a longer-term waiver.
"The company remains in ongoing constructive discussion with the lenders and further weekly extensions to the temporary waiver have been granted during this period of negotiation," said the group.
"This pattern of waiver extension may continue until such time as there is greater clarity and analysis of the current situation."
The AIM-listed group said its loan book continued to "perform well" and remained "stable", but warned that it was likely its existing lending portfolio would "modestly reduce" in the near-term.
As of 1100 BST, Distribution Finance shares were up 3.53% at 44p.
Distrib. Fin. (DFCH)29 May 2024 16:02