GAM reported to be renegotiating with lenders

Spanish news agency Europa Press has reported that rental company GAM is negotiating a new debt restructuring plan with its lenders having failed to meet financial targets set in February this year.

The news agency said GAM had reported losses of €42 million for the first six months of the year, compared to €19 million in the first half of 2010.

In February, GAM negotiated a year-long deferral of debt repayments totaling €118 million from 19 lenders. The deferrals were to allow it to continue to fund its international expansion in South America and elsewhere. GAM said the agreement covered 86.4% of its total lending.

The uncertainty surrounding GAM's finances will have a impact on its merger/takeover discussions with Spanish competitor HUNE, which have been ongoing over the summer.

IRN has asked GAM for comments on its financial position and for an update on the HUNE talks, but had not received details at the time of writing.