The troubled advertising group, the future of which is in doubt after several major client losses, had said on May 1 that it had reached agreement in principle with its lenders. It now says that it has signed a "definitive agreement" to continue funding.
Shares in the company remained static this morning at 8.75p, after climbing up and down by a penny over the past week, as the market speculated over the potential for Cordiant as a takeover target.
Now that the company has lost its 拢18m Allied Domecq work, along with earlier losses including Royal Mail and Woolworths, there is debate in the market about how much the group is worth as a whole. Publicis Groupe, the French advertising giant, has been mooted as a potential buyer, although the company has just finished bedding down its 2002 merger with Bcom3.
Cordiant is already in the process of disposing of some of its assets, including George Patterson Bates, the leading Australian advertising agency, and a stake in ZenithOptimedia.
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