New Star is refuting claims it is poised to breach banking covenants and approaching rights issue ter...
New Star is refuting claims it is poised to breach banking covenants and approaching rights issue territory at current FTSE levels. Two weeks ago, broker Arden Partners issued a note stating if the FTSE 100 fell to 4,400, New Star could breach banking covenants on its £220m debt. This would increase the interest rate by 1.5%, suggesting the group could become loss-making. Arden’s note added if the FTSE fell to 4,000, the group could face a rights issue and the market fell though the 4000 level several times on Friday. New Star insists the levels referred to are only relevant if the ind...
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