Photobitions bankers and loan note holders have agreed a short-term financing deal following the firms admission that it may have breached some of its banking covenants earlier this year (PrintWeek, 27 July).

But a spokesman for Photobition did not think the proposed MBO led by chief executive Eddie Marchbanks would be affected.

This is, however, a recognition that something is going to happen in the next few weeks, he said.

The interim agreement has no set time limit, but in a statement Photobition said the institutions had confirmed their intention to work with the company with a view to defining and entering into a longer-term solution.

A spokesman for the Photobition Forum Action Group said the agreement indicated that the lender group was working with the company.
It allays one of our fears that one part or the company itself was acting on its own, which could have plunged the group into receivership, he said.

Although various conditions had been imposed, he said there were none that prevented the lender group from supporting major change as part of the search for a long-term solution.

The Forum is continuing to press for an EGM, but will only call one when it has sufficient investor support.

Story by Andy Scott