Candover Expects To Pass Upcoming Covenant Test

LONDON (Reuters) – Private equity firm Candover Investments Plc (CDI.L) expects to stay within its financial covenants in 2009, the company said on Tuesday.

“Candover is compliant with its covenants and expects to be so throughout 2009. To the extent that anything changed on that front we would have to inform the market with immediate effect”, the group said in an emailed statement.

Shares in the firm’s listed private equity vehicle fell by as much as 30 percent following a Financial Times report the company would breach covenants at the end of June.

Candover Investments is the listed parent to Candover Partners and is a cornerstone investor in its funds.

(Reporting by Tom Freke)