Greenyard has announced that it is taking 'decisive actions' to remedy a number of exceptional circumstances that have led it to reduce its guidance for 2018/19.
The group said that it had been supported by its lenders, who would reset covenants in a bid to give Greenyard time to improve its profitability.
'For the next year, Greenyard will remain focused on deleveraging and realising profitable internal growth,' the company confirmed. 'Greenyard has therefore reached an agreement with the lenders under its credit facilities to amend the financial covenants for the current financial year, to allow Greenyard the time to gradually improve profitability through further operational improvements and the further roll-out of its strategy to build close partnerships with its customers.'
According to a statement, It has been agreed with the lenders under Greenyard’s credit facilities to amend the leverage covenants under the original agreement for the period ending 30 September 2018 and the period ending 31 March 2019.
Under the agreement with the lenders, Greenyard’s clear focus is on deleveraging the balance sheet.
“We are pleased to have the support of our lenders and appreciate their confidence in our company's future,” said Geert Peeters, Greenyard’s CFO. “Our amended financial covenants have been reset to reflect the forecasted 25 per cent decline in REBITDA for the accounting year 2018/19 versus last year.
'The waiver will give us the time to demonstrate the resilience of the business and allow us to take the necessary steps in terms of cost reductions and operational efficiencies towards the further deployment of our partnership model,' he added.
