Danka Business Systems has reached an initial agreement with its banks for a new re-financing plan after it announced losses for the year to March 2001.


Total revenue fell 17% to 1.5bn ($2.06bn), and it recorded a net loss of 160.6m compared with a profit of 7.5m last year.
The losses included restructuring costs of 11.4m and a goodwill write-off of 18.6m.


Danka chief executive Lang Lowrey said: "Were pleased that our banks have so strongly endorsed the on-going restructuring and operating efforts of the company. Debt reduction continues to be a principal focus and we will continue to review all opportunities."


The new credit facility is subject to approval from Dankas lenders and is also dependent on the sale of Danka Services International, but could be in place by the end of the month.