(Alliance News) - McBride PLC on Wednesday said its lender has waived debt covenant tests until September, giving the cleaning and hygiene product maker some relief as input costs surge and supply chain challenges intensify.
The Manchester-based company said its banking group has waived a June covenant test until the end of September.
Its banking partners had also waived December 2021 covenant tests.
Like in December, the waiver is contingent on McBride maintaining liquidity of at least GBP40 million and not paying dividends for now.
"The group continues to explore and assess all avenues to maintain liquidity and create additional funding for the benefit of all stakeholders. We are fully appreciative of the ongoing support that the banking group have and are continuing to give the group through this period of uncertainty caused by macroeconomic factors which have resulted in rapid and unprecedented rises in input costs and ongoing global supply chain challenges," McBride said.
The company added it is performing in line with market expectations. It will announce a "fuller" trading update following the end of its financial year on June 30.
McBride shares were 4.0% higher at 17.00 pence each in London on Wednesday morning. The stock is down more than 80% over the past 12 months.
By Eric Cunha; ericcunha@alliancenews.com
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Mcbride (MCB)