SHARES in Jessops sank more than 27% on news that the chain faced having to re-negotiate the terms of its ￡57m loan with HSBC bank. Jessops said it is 'highly likely 'that it will need to fundamentally restructure its debt to put the business on a 'more stable footing'. It emerged that, under current terms of its loan, Jessops may not be able to meet its banking covenants. This sparked fears that the chain is considering a 'debt-for-equity' swap with the bank, which already holds warrants over 15% of Jessops' share capital. The chain's share price fell to around two pence each.
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