Hit reaches agreement with lenders

The deal will waive a scheduled covenant test on the firm's $579 million debt.
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The firm has been negotiating with lenders to restructure or amend its credit facilities for the past few months.

It has reached a "forbearance agreement" that essentially waives testing the company's financial covenants. The test was scheduled to take place this week.

Covenants are terms written into lending documents specifying minimum levels of cash-flow and interest coverage or maximum levels of leverage and capital expenditure. If companies breach covenants, it gives lenders the opportunity to reset lending terms or ask for their money back.

Debt negotiations will now continue, with the preferred option being for Hit to reach an "amend and extend" arrangement with lenders, designed to give companies breathing room under their debt covenants and to extend the debt maturities.

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