Troubled agency holding company Cordiant Communications Group has secured temporary backing from its bankers, allowing the group to release preliminary results for last year and thus avoid suspension of its shares.
The London-based conglomerate, owner of ad agencies like Bates Worldwide, 141 Worldwide, Scholz & Friends and Healthworld, has won 12 weeks' reprieve from its bankers.
Cordiant reached an agreement in principle “for continuing financing agreements to July 15, 2003 while the board concludes its review of the various strategic options,” a statement said.
The company is entertaining offers for its sale after its financial position worsened April 28 when client Allied Domecq, a beverage and liquor maker, said it would terminate its contract from October. That account is worth $27 million, or 3.4 percent of the agency conglomerate's overall billings.
In a statement, Cordiant said that “it has received very preliminary approaches, which may or may not lead to an offer being made for the company. This is one of a number of alternative strategic options that the board is considering.”