UPDATE 2-SFK Pulp gets temporary waiver on covenant breach

* Gets two-week waiver from lenders

* In talks for a permanent amendment to its credit facility

* Says to record $2.8 mln bad-debt provision (Recasts, adds details)

June 29 (Reuters) - Canada's SFK Pulp Fund (SFK_u.TO) said it got a two-week temporary waiver from its lenders on a covenant breach and was in talks for a permanent amendment to its credit agreement.

The pulp producer said it was "reasonably confident" that it would reach a satisfactory deal with its lenders within this time frame.

Earlier in the day, the company said it would breach an interest coverage covenant on its credit agreement due to difficult market conditions, and record a bad-debt provision of $2.8 million in its quarterly results.

SFK Pulp said it would record the bad-loan provision after Fraser Papers Inc FPS.TO recently sought court protection from creditors.

"This amount represents all of the amounts owed to SFK Pulp by Fraser Papers," the company said.

Shares of SFK Pulp closed at 20.5 Canadian cents Monday on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi, R. Manikandan in Bangalore; Editing by Deepak Kannan, Ratul Ray Chaudhuri)