LONDON: Cordiant Communications won a stay of execution from lenders by brokering a last-minute deal which helped it to avoid a trading related suspension on the London Stock Exchange and release its results. The UK-based Cordiant Communications is a major stakeholder in prominent ad and media agencies such as Bates and Zenith Media - which have Indian offshoots too.

Shares of Cordiant rose 70 per cent on the news in early trading hours. Yesterday, the company released its results and reported pre-tax losses for full-year 2002 of $365 million, down from $433 million in 2001; its net loss was $375 million, compared with $456 million. Revenues fell 11.3 per cent to $852 million.

An adage report states that the communications group, which announced its preliminary results, has been given until July 15 to complete the sales of three major marketing agency holdings: PR agency Financial Dynamics; ad agency Scholz & Friends; and Australian ad agency George Patterson Bates. The fourth [the sale of its stake in Zenith Optimedia] sale is planned for January. Experts state that the four sales are expected to fetch Cordiant around $220 million -- almost enough to pay off its debts -- provided there are no more major client losses before the deals are completed.

A Guardian report states that a consortium of banks led by HSBC agreed to ignore a breach to loan agreements and continue to guarantee borrowings of about £250m until July 15 following the group's damaging loss of big client Allied Domecq, the drinks group

It also quoted chief executive David Hearn as stating that the group's business model was sound and it has the ability to deliver profitable work with the support of its lenders. He emphasised that the current scenario is not the all-engrossing crisis it has been made out to be.

Hearn added that he was personally in contact with remaining clients, reassuring them about Cordiant's future. He also added that all the options including a sale of the entire group would be examined. He said that he wanted to do the right thing to ensure that stakeholders, clients and staff are served fairly and well.