Abbeycrest breaches covenants

Date: Friday 31 Dec 2010

Shares in Abbeycrest slumped after the jewellery maker confirmed that it has breached its banking covenants with its senior lender Burdale Finance.

Abbeycrest, which operates manufacturing plants in the Far East and supplies jewellers in the UK and elsewhere, said earlier this month that it was being squeezed by higher precious metal costs and downward pressure on prices. It said it was taking measures to restore margins and reduce costs.

“As stated in the Trading Update of 16 December 2010, the Group was at risk of breaching its profit covenants with its senior lender, Burdale Financial,” Abbeycrest said today.

“This has now occurred and the management is working closely with Burdale to reset these covenants.”

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