Luminar, the country’s biggest nightclub operator, is planning to refinance its £90m net debt, even if it passes Thursday's test for a breach of covenant, it has been reported. The group's share price has fallen by almost 90% in the last year amid rumours that it is on the verge of collapse. The covenant, that the net borrowings must not exceed three times its ebitda figures, was met at the end of February at a ratio of 2.6 times ebitda. However, analysts predict that with a like-for-like decline in sales of almost 20%, it will be "touch and go" whether Luminar passes. One analyst told The Times this morning: “This is going to go to the wire. It could go either way.” If it avoids a breach, Luminar could opt to continue with its present debt facility, which has two years to run and accrues interest of only 75 basis points over Libor. Most predict however, that given that trading is unlikely to have improved since the last update, that Luminar will seek to refinance in a bid to draw under the issue – whatever the outcome.