Troubled Candover expects to meet debt covenants

Beleagured private equity group Candover has reportedly stated that it will be able to meet its debt covenants this year despite the ongoing problems at the firm. In December, the firm's ratio of net debt to portfolio value was a little more than 30% - it is required to remain below 40%.

It is reported that Candover is considering a range of options to raise additional capital in order to shore up its balance sheet, including a full takeover of the firm. However French investor Eurozeo, touted as a frontrunner to acquire the business, has announced that it will not make an approach.

Candover's shares plunged with the news, dropping to 177 pence. Other bidders are said to include secondaries specialist Coller Capital.

Candover's sale of portfolio company Wood Mackenzie, which has been in the works for weeks, could generate approximately £40m of proceeds and carried interest for the private equity group.

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