Enjoy SA (ENJOY), the Santiago-based casino owner, may again breach the terms of its bond covenants, Diario Financiero reported today, citing people it didn’t name.
Enjoy ended last year with debt more than 5 times its earnings before interest, tax, depreciation and amortization. The terms of its inflation-linked bonds sold in 2010 indicate that ratio should have been below 5, the newspaper said.
The company will ask bondholders today to agree that it can have until the end of the year to bring its ratio of debt to earnings before items to 4.5, the newspaper said. The holders of the debt are unlikely to accept the proposal, the newspaper said, citing bondholders it didn’t name.
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