Big task facing new FD at Premier Foods

25th Nov 2011 07:12

Cash-strapped food manufacturer Premier Foods is to get a new chief financial officer and his first job is likely to be the negotiation of the refinancing of the group's longer term debt. Mark Moran, previously finance director at Durex condoms maker SSL International, will replace Jim Smart early next month, though Smart will hang around for a month to enable a smooth hand-over. Smart, who has been with Premier Foods through thick and thin - mostly thin - since 2009, has "agreed with the company that 2012 would be the right time to step down as the company's new business plan is finalised and as its new financing arrangements are put in place."The phrasing of the company statement could be interpreted to indicate that Smart's departure was not instigated by him, though he may welcome a rest from Premier's struggles to service its debt mountain. The company has around £1.3bn of debts after splurging on another acquisitions. The company's banks have agreed to defer the company's end-of-year loan covenant tests by three months, giving the company a bit of breathing space to refinance.--jh