Premier Foods says weighing up possible rights issue

LONDON, Dec 23 (Reuters) - Britain's Premier Foods (LSE: PFD.L - news) said it is weighing up the possibility of launching a rights issue as part of a capital restructuring plan.

Responding to recent comments in the press, the maker of Mr Kipling cakes and Hovis bread said that it is continuing a review of options for its capital structure, adding that its bank debt and credit facilities are in place until mid-2016.

"The group confirms that this review is ongoing and, while it includes the possibility of a rights issue, no decisions have been made at this stage," the company said in a statement on Monday.

Britain's Sunday Times reported that the company, which started the review of its capital structure in July, was poised to launch a 300 million pounds ($490.65 million) right issue as part of a financial package to tackle debts.

Shares in Premier Foods traded down 7.2 percent at 1147 GMT. ($1 = 0.6114 British pounds) (Reporting by Li-mei Hoang)