The Daily Mail in the UK is reporting
Troubled law firm Slater and Gordon avoid bankruptcy after reaching deal with lenders – but could still face a class action from investors hit by value loss of $1.8BILLION
- Slater and Gordon have agreed to amendments to its facility agreement
- The new agreement means loans don’t have to be repaid until May 2018
- Slater and Gordon is to repay $480 million of debt in the 2018 financial year
- The law firms share price sits at 29.5 cents compared with $8.07 last year
Law firm Slater and Gordon have managed to avoid bankruptcy after making a deal with bankers.
The company has said in a statement to the Australian Stock Exchange on Monday, that they have agreed to amendments made to its facility agreement with lenders, led by Westpac and NAB.
This ensures their loans do not have to be repaid until May 2018.
Slater and Gordon previously had until the start of May to reach a deal with the banks. If it didn’t, it would have had to repay its debts within a year.
In the new agreement, Slater and Gordon is to repay $480 million of debt in the 2018 financial year and $360 million in 2019.
