WasteCo has announced that it breached its quarterly interest cover ratio and leverage ratio covenants with Kiwibank.
The company attributed the covenant breaches to weaker quarterly trading, with revenue down against budget, especially from larger customers.
WasteCo's management team is now reviewing its cost structure and focusing on strategic revenue growth initiatives in response to the current trading environment.
The company is in constructive discussions with Kiwibank and providing further information as part of the negotiations, seeking either a waiver or variation of the quarterly covenants.
WasteCo remains in compliance with all other banking covenants.
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