Funders of equipment finance company Silver Chef have given the company a reprieve, granting a waiver from action in relation to a breach of its debt covenants until June 30.Silver Chef is negotiating with Next Capital, a private equity group that made a non-binding offer for the company in April.It must raise A$45 million to repay a syndicated debt facility and ensure that its net debt to net rental asset ratio comes back under 65 per cent.The company has been in breach of debt covenants since June last year, largely due to its $11.7 million loss in 2017/18. It has been working on a capital management plan since then.The company's problems go back to its decisions, early last year, to get out of its GoGetta business, which was not making an acceptable return and was also in trouble with the regulator. Write-downs of expected returns from GoGetta and an increase in provisions tipped the company into loss.ASIC took the view that some of GoGetta's contracts were actually consumer lending and that the company did not have the appropriate licence. The company has made provisions of around $4 million for customer remediation.It appointed Morgans Corporate as lead manager for an equity raising, but the heavy fall in its share price over the past eight months has made that task difficult. The share price has fallen from a peak of $11.20 last October to the current price of around 70 cents.In the meantime, conditions imposed with the waivers have constrained the business. The company is currently only able to originate from available cashflow. This has "significantly reduced the near-term financial outlook for the company and reduced the effectiveness of the proposed capital management plan".According to the company's latest disclosure, the exclusivity agreement with Next Capital runs until June 14.