Rok seeks refinancing deal with lenders

Rok is understood to be seeking a meeting with its lenders over refinancing, a month after issuing its second profit warning of the year.

According to newspaper City AM, the firm is lining up talks with its banks in order renegotiate its debt. Rok had to issue two profit warnings earlier this year after belatedly discovering that a recent acquisition was suffering unknown losses.

Garvis Snook was quick to assure the market that the problem was isolated to the one division and the firm’s finance director was suspended.

A Rok spokesperson told City AM that Rok is not at risk of breaching its covenants and said it was in fact an indication of confidence over meeting market expectations for profits.

The spokesperson said: “We have commenced discussions with our banks with a view to renewing our banking facilities. The timing of that refinancing is in line with the requirement to put new facilities in place in the early part of 2011.”

The group’s banks are bringing in PricewaterhouseCoopers, which is already raising eyebrows over its work on Connaughts accounts, to verify Rok’s accounts ahead of the talks.