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Cordiant Looks To Refinance Overdraft After Tough Year

Cordiant Looks To Refinance Overdraft After Tough Year

Troubled advertising agency network, Cordiant Communications, is understood to be seeking a refinancing of its £276.4 million overdraft facility after tough trading conditions and negative newsflow have hit the company hard.

Cordiant is reported to be in talks with its bankers about its extending its overdraft, following a period of weak advertising sales and acquisitions which has left the company’s books somewhat unbalanced.

In September this year Cordiant issued a profits warning (see Shares Slump As Cordiant Issues Profits Warning) and there followed in December job cuts and further cuts to revenue forecasts (see Cordiant Makes Further Jobs Cuts As 2001 Revenue Predictions Fall Further). Later in December there were rumours that the company was being stalked for takeover by rival ad group Publicis; these were quickly denied by the latter (see Publicis’ Interest In Cordiant Denied).

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