The banks propping up Premier Foods have agreed to postpone a crucial test of the manufacturer’s finances.

Premier today said it had struck a deal with its lenders to delay the test from 31 December to 31 March next year – buying further time for a refinancing deal to be put in place.

Chief executive Michael Clarke (pictured) said the news showed the City shared “our vision and high-level plans” for turning around the company.

“This is an important step towards securing a longer-term financial foundation for the business,” said Clarke.

“In recent weeks, we have set out our priorities and made significant leadership changes to strengthen our focus. We are now moving quickly to finalise our detailed growth plans to ensure we continue to build momentum in the business.”

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