**ASOS Shares Plummet Amid Loan Covenant Renegotiation Talks** London, UK - October 17, 2022 - Shares of British online fashion retailer ASOS (ASOSL) took a sharp dive on Monday following news that the company was engaged in negotiations with lenders to amend the terms of a 350 million loan facility. In a statement released on Monday, ASOS confirmed that it was in discussions with its lenders to "revise the financial covenant package" associated with the loan. The retailer did not provide specific details about the proposed changes to the loan agreement. According to market analysts, the news of the loan covenant renegotiation has raised concerns among investors about ASOS's financial health. The retailer has been struggling in recent months due to a combination of factors, including rising inflation, supply chain disruptions, and increased competition from online rivals. In the past year, ASOS shares have lost more than half of their value. The stock closed at 641 pence on Monday, down 23% from Friday's close. The company's lenders are reportedly seeking to tighten the loan covenants, which are restrictions placed on a borrower's financial performance. This could result in ASOS having to take on additional debt or sell assets to meet the new requirements. ASOS said that it expects to complete the loan covenant negotiations in the coming weeks. The company has not yet disclosed any details about the potential impact of the changes on its financial position.
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