London Town avoids suspension of shares

Pub company London Town, which is listed on the AIM, has filed its annual accounts thereby avoiding having its shares suspended on the junior market.

By Ellie Duncan | Wed Jul 1, 2009

According to a report in the Financial Times, the company revealed earlier this week that it had breached covenants on its 83.7 million pound bank loans.

It is now in talks with lenders to agree the terms of its banking facilities.

In a statement, the company said: "It cannot be guaranteed that an acceptable agreement will be reached but the directors are confident that satisfactory agreement will be reached."

London Town has reported pre-tax losses of 24.7 million pounds for the year to December 28, after its accounts were drawn up on a "going concern basis".

At the year end, net debt totalled 110.8 million pounds.