Sweden's Fastator says it is in breach of some financial covenants (updated)

Fastator AB (publ)

16/02/2024 15:18

(Adds quote, detail i paragraphs 2-4)
       OSLO, Feb 16 (Reuters) - Swedish real estate group
Fastator  FASTAT.ST  said on Friday it was in breach of some of
its financial solvency covenants and that it would start
negotiations with major bond holders to mitigate the situation.
    The company's equity was worth an estimated 33% of its
overall balance sheet at the end of 2023, Fastator said, below
the minimum 45% mandated by the covenants.
        As a result, bond holders would have the right to
terminate their holdings when the annual report is released on
Feb. 26, Fastator said in a statement.
  
        "Fastator intends to start negotiations with the major
holders of the bonds and in the near future initiate written
procedures... with a request for approval regarding
non-fulfilment of the solidity covenant," it added.
  

 (Reporting by Terje Solsvik, editing by Louise Rasmussen)
 ((terje.solsvik@thomsonreuters.com; +47 918 666 70;))