Italy's Pro-Gest has entered into binding agreements with its principal financial creditors to restructure the group’s debt. The deal, which comprises a lock-up agreement and an accompanying term sheet, is said to allow the Zago family to retain full ownership and control of the group.
Under the terms of the agreement, debt maturities will be extended to 2030, with an option for a further extension until 2032 at the creditors’ discretion, alongside a reprofiling of interest rates. In parallel, the group has agreed on a repayment framework for principal and interest based on a predefined asset disposal plan, which includes the divestment of real estate assets with a total value of approximately €80m as well as selected operating units.
The term sheet also provides for a partial write-off of accrued interest and an expansion of the security package in favour of the lenders, Pro-Gest announced in a press release late last week, without providing further details of the debt restructuring agreement.
According to Angelo Rodolfi, Chief Restructuring Officer of the Pro-Gest group, the agreement is the outcome of a year-long negotiation process conducted within the framework of Italy’s out-of-court restructuring and turnaround mechanism CNC (Composizione negoziata della crisi). The objective, he said, was to achieve a sustainable deleveraging of the group’s balance sheet while preserving enterprise value for the benefit of creditors and all other stakeholders. The next steps will focus on finalising the contractual documentation and executing the restructuring plan.
As stated in the company’s press release dated 23 January, Pro-Gest emphasised remains a financially "solid company and a strong innovator with a leading position in its core sectors."
With an annual production capacity of 1.3 million t of paper and 1 billion m² of corrugated products, Pro-Gest is regarded as Italy’s largest independent manufacturer of containerboard, corrugated board, and corrugated packaging. The Group is also active in recovered paper recycling and in the production of tissue paper and products.
