MFS Breaches Loan Agreement With Bank of Scotland, Review Says
By Rebecca Keenan
March 25 (Bloomberg) -- MFS Ltd.'s flagship MFS Premium Income Fund is in talks with its lender, Bank of Scotland, after breaching a A$184 million ($167 million) loan facility, the Australian Financial Review reported, citing the company.
The A$750 million fund breached a covenant, making the loan repayable on demand, the newspaper said. MFS has secured a standstill agreement until the end of March after it agreed to suspend distributions to investors earlier this month, it said.
It is in talks with Bank of Scotland to extend the standstill agreement, the paper said.
To contact the reporter on this story: Rebecca Keenan in Melbourne at [email protected]
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