Signs are emerging in Europe that companies are being forced to renegotiate their loan covenants with lenders as tougher economic conditions and spiralling debt-service costs take hold.

An analysis of publicly available data by the law firm Allen & Overy shows that 11 companies – including two from the UK – were granted waivers on the imminent breach of their loan covenants in the first five months of the year. These include ATU, the Germany auto parts company which was granted a waiver that suspended its lending covenants for most of 2008.