Premier Foods has appointed PricewaterhouseCoopers to assist it in talks with lenders about a potential refinancing plan.
PwC had been a retained advisor to the company for several years and was “the obvious choice” to help Premier engage with its banks to reset certain covenants, the manufacturing giant said.
Premier is also looking to extend the maturity profile of its debt.
Net debt for Premier will stand at £972m once proceeds from the sale of its Princes canned food business filters through. Alongside that stands a pension deficit of £273m.
Analysts predicted a deal would be struck to keep Premier financed. “RBS has a commercial and political interest in keeping Premier as a going concern,” Investec analyst Martin Deboo said today.
The news comes after new Premier boss Michael Clarke (pictured) outlined his rescue plan for the embattled manufacturer, which earlier this month was forced to issue its second profits warning of the year.
Clarke: ‘With focus on power brands, I can save Premier’ (analysis; 15 October 2011)
More disposals loom as second profits warning signals new low for Premier (7 October 2011)
Cakes and Mr Kipling key as Premier dreams of an ambient Christmas (29 September 2011)