Lecta has reached financial agreements with its main shareholders and creditors to improve its liquidity, support its ongoing strategic initiatives and strengthen its working capital.
The company has been granted a €10m credit facility to support its ongoing working capital requirements and a deferral of interest payments due in early September under its Super Senior Facility Agreement and New Money Notes. In addition, the Super Senior Credit Facility Basket has been increased by €100m to facilitate medium-term capital requirements.
To meet its medium-term financial needs, Lecta also intends to create new secured financing for its new business units planned as part of a restructuring. Lecta explains that it intends to divide the group into four independent business units (Fine Paper, Self-Adhesive, Distribution, Specialities). These are to be managed independently in order to streamline processes, increase efficiency and achieve synergies. In addition, the new structure is to facilitate financing and value realisation solutions for the individual business units, as well as growth initiatives and cost management.
Details of the additional liquidity enhancement measures are still being finalised, and the company will announce further updates and announcements in due course.
Against the backdrop of weak markets and ongoing price pressure, Lecta slipped into the red in both net income and operating income in the second quarter of this year, with Ebitda falling to €11m (2024: €44m).
