Hit reaches agreement with lenders

The deal will waive a scheduled covenant test on the firm's $579 million debt.
Publish date:

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.


Featured Jobs

Copyrights Group

Marketing Manager

The Copyrights Group is one of the licensing arms within The Vivendi Group. Acquired by Vivendi in 2016 Copyrights manages the licensing for a portfolio of properties to include Paddington Bear. Some of the other companies within the Vivendi Group include Universal Music Group, and their licensing arm Bravado, Gameloft and Studiocanal to name a few.