Veritas, the listed hospitality company which owns the Mad Butcher franchise and Nosh Food Markets, has agreed a deal with its bank to reduce debt repayments and reschedule its debt.

In a statement published to the NZX, Chairman Tim Cook said the company had “received a committed term sheet from the ANZ Bank which it has accepted.” He added the information was consistent with the unaudited financial statements published on Aug. 29.

Those statements showed the board had to weigh up if the business was still a going concern, given the uncertainties around the rescheduling of its debt repayments. The documents revealed that ANZ Bank had agreed to accept a reduction in monthly loan payments from July to September 2016 to $200,000 from $415,000 but advised Veritas that it would provide a term sheet reflecting a rescheduling of the group’s repayment terms.

Veritas is carrying debt of $33 million and a sharp fall in its share price since Aug. 29 means its market value is now just $12.5 million. The shares last traded at 29 cents from 47 cents on Aug. 29, a fall of 38 percent.

The group’s audited financial statements are due to be published on or before Sept. 20.