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Slater and Gordon working on debt deal

AAP logoAAP 27/12/2016

Embattled law firm Slater and Gordon has secured some changes to the terms of its loans as it works to restore its financial health.

The company made a loss of $1.02 billion in the 2015/16 financial year due mainly to its troubled UK operations, and is working to improve earnings and cashflow in order to resurrect shareholder returns.

Slater and Gordon shares were trading at $7.85 in April 2015, but are now valued at just 23 cents.

The company said on Wednesday it had reached agreement with its lenders to make amendments to its loans, though the maturity date remains May 2018.

"The company is working pro-actively and co-operatively with its lenders to explore and manage options for the refinancing and recapitalisation of the group," Slater and Gordon said in a statement.

"The process has commenced well ahead of the May 2018 deadline, with the objective of achieving an appropriate and successful outcome for stakeholders and a smooth process leading to that outcome."

The company said it expects media speculation as it works with its lenders, but would not "provide a running commentary" on the negotiation process.

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