Lecta bondholders to take control of the company

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Agreement reduces debt and costs, provides additional liquidity, allows company to continue transformation into specialty paper company.

Lecta, its controlling shareholders, the holders of the majority of its 2022 and 2023 Senior Secured Notes and the holders of the majority of the debt under its Revolving Credit Facility have reached an agreement on a comprehensive recapitalisation of the Lecta group and the provision of additional liquidity. The company announced that the successful implementation of the recapitalisation would allow to it transform into a specialty paper company.

The recapitalisation will transfer the ownership of Lecta from existing shareholders to the holders of the named notes who "comprise well capitalised institutions with extensive experience in the sector", reduce the company's debts by €380-400m, and provide new money to support the operations and fund its transformation and growth projects, the company says in a press release.

Lecta also says that the French authorities have communicated their willingness to provide various measures of support for its operations in France.

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