Sport Media extends bank facilities
SPORT Media, the Manchester-based publisher of the Sport newspaper, has been thrown a lifeline by its bank.
In a statement to the stock market it said it had negotiated an interim extension to its banking facilities while it reaches an agreement on longer term debt arrangements.
It said: “The board remains optimistic that longer term facilities will shortly be agreed, but nonetheless continues to explore all other possibilities to secure the group’s future.
“The company will continue to update the market with regards to future developments as and when they occur.”
Last month Sport Media admitted it was considering the sale of all, or part, of the business. This came after its auditor Mazars refused to prepare the company’s accounts on a going concern basis because the refinancing had not been finalised.
When it issued its unaudited final figures on January 8 Sport Media admitted it had breached one of its banking covenants and had until March 6 to renegotiate its finances.
Sport Newspapers was sold by founder David Sullivan and his partners to Interactive World for £50m in August 2007. The reverse takeover saw Sport Newspapers become a public company via a listing on AIM.
In the year to July 31 losses rose from £5.3m to £18.2m after one-off costs relating to the acquisition of Sport Newspapers.
