‘Covenant-lite’ loans, used particularly by private equity firms, have been
defended by the Association of Corporate Treasurers, who have said the loans are
not as risky as critics have made out.
‘Covenant-lite is not covenant-free. Such loans are heavily negotiated. Such
loans still have far more restrictions than an investment grade borrower would
normally agree to,’ said John Grout, policy and technical director at the ACT,
in a letter to the FT.
The loans have attracted attention from unions and politicians who have been
probing the private equity industry. Opponents of the industry have said the
‘cov-lite’ loans are risky and reckless and place companies and jobs at risk.
The Financial Reporting Council has issued guidance regarding the annual reporting of 1,200 large and smaller listed companies. The letter highlighted the key issues and improvements that can be made in the 2016 reporting season
Baldwins Accountancy Group has continued investment in the north-east and appointed David Fish as a director in its corporate finance team
UK M&A activity bounced back strongly in July and August, according to analysis by the deals practice at PwC.
Smith & Williamson has added Jim Clark and Philip Marsden, of Marsden Clark Corporate Finance Limited, to its corporate finance team.