Tragus in talks over bank debts

Restaurant company Tragus, which owns the Cafe Rouge and Strada brands, is said to be set to meet its banks this week to avert a breach of its banking covenants.

The group, owned by private equity firm Blackstone, has admitted it is likely to fail a covenant test at the end of May, according to the Daily Telegraph.

The paper said the company would ask lenders to give it more headroom on its £230m of debts in exchange for a £10m fee and higher interest payments.

The company does not have any immediate liquidity problems and £40m of cash on its balance sheet.

A Tragus spokesman said: "We have good and regular dialogue with our banks. We do not have to extend the maturity of the facility but it is about being prudent and ensuring we have the appropriate capital structure in place to continue with our growth plans."

By Neil Gerrard

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