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Pendragon to restructure borrowing agreements

Pendragon has admitted it is in talks with its lenders to make changes to its loan terms as it reviews its financing structure amid the economic downturn.

In a statement to the City, Pendragon said: “The board of Pendragon notes the increase in the group's share price following recent press speculation about a potential restructuring of its existing borrowing arrangements.

“Pendragon confirms it has been reviewing its financing structure in light of the current economic climate. As part of that review we can confirm that we are having discussions with lenders regarding changes to our loan agreements which would make them more appropriate for anticipated future trading conditions. We will make a further announcement when appropriate.”

Pendragon's shares have risen by 40% over the past week and are currently at 9.99p.

Pendragon's financial results are expected to be announced this month.

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