BUZZ-Telit breached debt covenant weeks after capital raise

** Telit breached one of its debt covenants just eight weeks after a £39 mln capital raise

** The troubled internet of things company is currently looking for a new CEO after Oozi Cats stepped down over an indictment for mortgage fraud in the US

** According to the footnotes of Telit's H1 accounts, the company breached a covenant on June 30 imposed by one of its banks, on debt totalling $19.1 mln

** The unnamed bank agreed to waive the covenant, according to the note

** Telit has working capital facilities of $110 mln with two banks, HSBC and Bank Hapoalim. It also has guaranteed loans from the Italian government of $55 mln of which it had drawn down $30 mln by October 2016

** Telit declined to comment further on the covenant breach, but a source close to the company said it was comfortable with its debt position

** The company reported net debt for the first half of the year despite the capital raise, with brokers questioning whether the money will now be spent on M&A as planned