Recycling and waste management company is set to get support from its lenders for a pause on testing its banking covenants.
Financial publication eFinancial news is reporting that Biffa, which has £1.1 billion in debt, will be given breathing room by its financial backers until November to test its banking coventants.
These covenants are benchmarks that private-equity backed companies are required to meet in order to comply with their lending terms.
According to eFinancial News a source told it that Biffa remains profitable and is ahead of its budget targets, but this pause was requested to give the company time and flexibility to introduce its new five-year business plan.
Biffa is continuing to refocus its business on recycling and waste management and is reported to be considering disposal of non-core assets.
