By Maximilian Clarke

Premier Foods (LSE: PFD) have today (Monday) have reached an agreement with the banking syndicate holding the company’s debt to defer its upcoming covenant test.

The heavily indebted company behind a number of familiar household brands, including Ambrosia, Bisto and Quorn, is currently engaging in ‘constructive’ discussions with the syndicate about refinancing its debt. News of the progress Premier have made send the FTSE 250 listed company’s share prices up 12.8%.

“This is an important step towards securing a longer term financial foundation for the business. I am very pleased that after sharing our vision and high-level plans, our banking syndicate has confirmed its support,” commented Premier Foods’ Chief Executive Officer, Michael Clarke.

“In recent weeks, we have set out our priorities and made significant leadership changes to strengthen our focus. We are now moving quickly to finalise our detailed growth plans to ensure we continue to build momentum in the business.”

Further updates regarding the discussions with the banks will be provided as appropriate. The company expects that a further announcement on the long-term refinancing of its debt and extension of its facilities will be made at the conclusion of those discussions.

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