Ramsay breaches bank deal, renegotiates loan

Mar 6 2009 by Alun Thorne, Birmingham Post

Gordon Ramsay’s restaurant group is renegotiating a multi-million pound loan after breaching banking agreements, his accounts showed yesterday.

Gordon Ramsay Holdings (GRH), which acts for the chef’s restaurants, breached its banking covenants – promises made to creditors to secure a loan – the accounts for the year ending August 31, 2007, revealed.

The accounts, which were filed eight months late, said: “The group has breached some of the financial convenants within the facility and therefore the group has commenced renewal negotiations with the bank.”

The accounts said the group “has held discussion with its bankers about future borrowing needs and is looking to agree terms in this connection” and that “discussions are progressing positively”.