Nightclub operator Luminar, the firm behind brands Oceana and Liquid, has gone into administration after the consortium of banks backing it decided not to extend a waiver on the covenants of its three-year banking facility.
The company announced the move today, ahead of the expiry of the waiver on certain covenants in its three-year facility with Lloyds Bank, Barclays Bank, and the Royal Bank of Scotland tomorrow (27 October).
The firm, which operates 76 sites and claims to be the largest nightclub group by are in the country, said that it had continued to investigate other long-term restructuring options with the banking group and other parties.
In a statement Luminar said: "The Banking Group has today informed Luminar that it will not grant an extension to the waiver when it expires. Absent such waiver, the Company is unable to meet certain of its repayment obligations to the Banking Group which fall due on 27 October. As a result it will also be unable to issue its half-yearly financial report covering the first six months of the financial year on a going-concern basis on that date as required by the Disclosure and Transparency Rules.
"Accordingly, the Directors of Luminar have no option but to take steps to place the Company and certain of its subsidiaries into administration and to request the UKLA to suspend trading in Luminar's shares with immediate effect."
By Neil Gerrard
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