Law firm Slater and Gordon says it has reached agreement to make further amendments to its bank finance facilities.
The maturity date for the group’s facilities is May 2018. In 2016, the company reported net debt of $682.3 million.
“The company is working pro-actively and co-operatively with its lenders to explore and manage options for the refinancing and recapitalisation,” the company said today.
Slater and Gordon says it doesn’t intend to provide a running commentary on the process.
“The process has commenced well ahead of the May 2018 deadline, with the objective of achieving an appropriate and successful outcome for stakeholders and a smooth process leading to that outcome,” it says.
In August, the world’s first stock exchange-listed law firm posted a widely expected annual loss of $1.017 billion.
The result included a $879.5 million non-cash impairment against the value of goodwill after its UK business earnings were worse than expected.
Last year the shares hit a high of $8.07, valuing the company at $2.8 billion, but have been on steep slide because of its underperforming UK business and the British government plans to limit compensation for road accidents.
The shares last traded at $0.23.
The company also faces a $250 million class action, the largest by shareholders in Australian legal history.