Mitchells & Butlers gets extension to financing waiver

Mitchells & Butlers said the waiver agreed with lenders to avoid a breach of its financing terms had been extended for three weeks.

The FTSE 250 company announced the waiver to 15 May in mid-April because the closure of its pubs and restaurants during the coronavirus might cause a breach of its financing arrangements.

"Mitchells & Butlers announces today that the temporary waiver it has been granted, as previously announced, against possible technical default due to enforced closure of the business has been extended to 8 June," the owner of Harvester and All Bar One said in a statement.

Pubs and restaurants were shut down by the UK government last month to avoid people gathering in large numbers and spreading the virus. The closure has left many pub companies fighting for survival.

The government has said some pubs in England could be allowed to reopen in early July if they can keep drinkers apart to limit the spread of Covid-19.