Mecom given another month to get finances in order

European newspaper publisher Mecom has won a further reprieve from its lenders and now has until the end of March to get its finances back within agreed limits.

The publisher, led by former Mirror Group chief executive David Montgomery, has agreed with its lending banks that a covenant test, originally due to take place at the end of December, will now not be held until 31 March.

Since the beginning of the year, Mecom has announced the sale of its German newspaper operation and a number of its Norwegian titles to raise cash and reduce its debt levels.

"The company is continuing constructive discussions with its lending banks with a view to concluding certain amendments to its debt facilities so as to provide financial stability in the medium term,'Mecom said.

"Further updates to the market on discussions with the banks will be made in due course."

Mecom's share price at 11.15am was down 14.8 per cent at 3.75p, giving the group a market value of £59m.

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