Bank issues dollars 400m credit ultimatum to troubled Interpublic.(Brief Article)

Embattled Interpublic faces further problems following last week's boardroom reshuffle after it emerged that it must raise dollars 400 million from asset sales and new capital or face losing bank credit facilities.

The Interpublic Group currently relies on a dollars 500 million one-year revolving credit facility, used to guarantee short-term funding. This expires on 15 May. Conditions of its renegotiated agreement stress that Interpublic must raise the dollars 400 million by that date for the rolling facility to continue.

If Interpublic fails to meet this condition it will be forced into an expensive short-term dollars 500 million loan facility ...