Pepkor in talks with banks about new debt terms

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Pepkor in talks with banks about new debt terms
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Reducing debt remains its objective even if it does not take place quickly, CFO says

Pepkor will miss its debt reduction targets due to the coronavirus-

The ratio, which shows how well a company’s earnings covers its debts, is often used by banks in calculating how much interest it charges on a firm’s borrowings. Some business such as Long4Life have said some Sorbet Beauty salons may not reopen with Spur warning some of its franchise restaurants will remain shut too.

It spent R1.2bn on bringing short-term credit provider Capfin in-house and reinvesting in new credit, which decreased profit. In a virtual results presentation, Hanekom said the group has had several discussions about renegotiating debt agreements with banks but did not give more details.

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