December 14, 2016 / 7:47 AM / a year ago

UPDATE 1-Eniro agrees with banks to defer payments

(Adds detail, background)

Dec 14 (Reuters) - Struggling Swedish search and directories group Eniro on Wednesday reported it had agreed with its lenders to postpone payments and said it sees “good conditions” for the company if its capital structure can be changed.

* Has today reached an agreement with its lenders, a syndicate of six banks, which means deferment of principal payments on the company’s bank loans and the key ratio covenants of the loans

* “If a reorganization of the capital structure can be achieved, we see good conditions for Eniro,” said chairman of the board Bjorn Bjornsson

* Said stand still agreement is in effect until end of February 2017

* Eniro said it has established a new business plan during the autumn where the outlook for long term profitability is improved

* During the period of this stand still agreement Eniro will negotiate about the company’s loan agreement and capital structure

* Eniro said in October it had initiated negotiations with its creditors

* Its view in October was that Eniro would not be able to fulfill all of key ratio covenants of its loan agreements at year-end 2016 and that it would not be able to meet loan amortization payments that are required under terms of its current loans by Q2 2017

* Company has not shown underlying growth since 2007

* Eniro used to make printed telephone directories and has seen its business model upended by the rise of the internet, smartphones and new competitors such as Google Source text for Eikon: Further company coverage: (Reporting by Olof Swahnberg)

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